New Issue: HSBC prices $3.75 million trigger autocallable optimization notes tied to Russell 2000

By Toni Weeks

San Diego, Sept. 30 - HSBC USA Inc. priced $3.75 million of 0% trigger autocallable optimization securities due Sept. 30, 2016 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus 13.14% per year if the closing index level is greater than or equal to the initial level on any quarterly observation date. The first observation date is Oct. 3, 2012.

If the notes are not called and the final index level is greater than or equal to 55% of the initial level, the payout at maturity will be par. Otherwise, investors will share fully in the index's decline from the initial level.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger autocallable optimization securities
Underlying index:	Russell 2000
Amount:	$3,751,300
Maturity:	Sept. 30, 2016
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final index level is greater than or equal to trigger level, par; otherwise, full exposure to index decline
Call:	Automatically at par plus 13.14% per year if index closes at or above initial level on any quarterly observation date; first observation date is Oct. 3, 2012
Initial index level:	651.97
Trigger level:	358.58, 55% of initial index level
Pricing date:	Sept. 28
Settlement date:	Sept. 30
Underwriter:	HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
Fees:	2.5%
Cusip:	40433C429

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