New Issue: HSBC sells $24.39 million PLUS on S&P 500 with 300% leverage, 12.75% cap

By Susanna Moon

Chicago, Feb. 24 - HSBC USA Inc. priced $24.39 million of 0% Performance Leveraged Upside Securities due March 26, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus triple any gain in the index, up to a maximum of $11.275 per note.

Investors will be exposed to any losses.

HSBC Securities (USA) Inc. is the agent. It will use all of the fees to pay a sales commission to Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Performance Leveraged Upside Securities
Underlying index:	S&P 500
Amount:	$24,394,070
Maturity:	March 26, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 300% of any index gain, capped at 12.75%; exposure to losses
Initial level:	1,315.44
Pricing date:	Feb. 22
Settlement date:	Feb. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40432R245

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