New Issue: HSBC prices $3.5 million return enhanced notes tied to 12 stocks

By Angela McDaniels

Tacoma, Wash., April 12 - HSBC USA Inc. priced $3.5 million of 0% return enhanced notes due April 25, 2012 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Chesapeake Energy Corp., Range Resources Corp., Southwestern Energy Co., Exxon Mobile Corp., Cenovus Energy Inc., ConocoPhillips, Baker Hughes Inc., Halliburton Co., Noble Corp., Arch Coal, Inc. and Consol Energy Inc. and the class B subordinated voting shares of Teck Resources Ltd.

The payout at maturity will be par plus two times any increase in the basket, subject to a maximum return of 27%. Investors will be fully exposed to any basket decline.

The final basket level will be the average of its closing levels on the five trading days ending April 20, 2012.

J.P. Morgan Securities LLC is the agent.

Issuer:	HSBC USA Inc.
Issue:	Return enhanced notes
Underlying stocks:	Chesapeake Energy Corp., Range Resources Corp., Southwestern Energy Co., Exxon Mobile Corp., Cenovus Energy Inc., ConocoPhillips, Baker Hughes Inc., Halliburton Co., Noble Corp., Arch Coal, Inc., Consol Energy Inc. and Teck Resources Ltd., equally weighted
Amount:	$3,502,000
Maturity:	April 25, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any basket gain, up to maximum return of 27%; exposure to any basket decline
Pricing date:	April 8
Settlement date:	April 13
Agent:	J.P. Morgan Securities LLC
Fees:	1%
Cusip:	4042K1GF4

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