New Issue: HSBC prices $12.31 million PLUS tied to S&P 500, Russell 2000, EAFE ETF

By Angela McDaniels

Tacoma, Wash., March 21 - HSBC USA Inc. priced $12.31 million of 0% Performance Leveraged Upside Securities due April 23, 2012 linked to an equity basket, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the S&P 500 index with a 60% weight, the Russell 2000 index with a 20% weight and the iShares MSCI EAFE index fund with a 20% weight.

If the basket return is positive, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum return of 17%. If the basket return is negative, investors will be exposed to the decline.

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

Issuer:	HSBC USA Inc.
Issue:	Performance Leveraged Upside Securities
Underlying basket:	S&P 500 index (60% weight), Russell 2000 index (20% weight) and iShares MSCI EAFE index fund (20% weight)
Amount:	$12,313,600
Maturity:	April 23, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus triple any basket gain, up to maximum return of 17%; exposure to any basket decline
Initial levels:	1,278.00 for S&P 500, 792.10 for Russell 2000 and $57.43 for iShares MSCI EAFE
Pricing date:	March 17
Settlement date:	March 22
Agent:	HSBC Securities (USA) Inc.
Fees:	1.875%
Cusip:	40433C601

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