New Issue: HSBC prices $3.37 million 10.04% trigger yield optimization notes on Gerdau ADRs

By Marisa Wong

Madison, Wis., Feb. 16 - HSBC USA Inc. priced $3.37 million of 10.04% trigger yield optimization notes due Aug. 19, 2011 linked to the American Depositary Receipts of Gerdau SA, according to a 424B2 filing with the Securities and Exchange Commission.

Each note has a face amount of $14.13, which is equal to the initial price of Gerdau ADRs.

Interest is payable monthly.

The payout at maturity will be par unless the final ADR price is less than 80% of the initial price, in which case the payout will be one Gerdau ADR per note.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Trigger yield optimization notes
Underlying ADRs:	Gerdau SA
Amount:	$3,369,877.83
Maturity:	Aug. 19, 2011
Coupon:	10.04%, payable monthly
Price:	Par of $14.13
Payout at maturity:	If final ADR price is less than trigger price, one Gerdau ADR; otherwise, par
Initial share price:	$14.13
Trigger price:	$11.30, 80% of initial price
Pricing date:	Feb. 14
Settlement date:	Feb. 17
Agents:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	1%
Cusip:	40432R211

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