New Issue: HSBC prices $739,000 autocallable notes due 2015 linked to S&P 500

By Marisa Wong

Madison, Wis., Jan. 30 - HSBC USA Inc. priced $739,000 of 0% autocallable notes due Jan. 30, 2015 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium if the index closes at or above the initial index level on any of the three call valuation dates. The premium is 9.5% if the notes are called on Feb. 1, 2013, 19% if called on Jan. 29, 2014 and 28.5% if called on Jan. 27, 2015.

If the notes are not called and the final index level is at least 70% of the initial index level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% drop below the initial level.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable notes
Underlying index:	S&P 500
Amount:	$739,000
Maturity:	Jan. 30, 2015
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is at least 70% of initial index level, par; otherwise, full exposure to losses from initial level
Call:	Automatically at par plus 9.5% per year if index closes at or above initial index level on Feb. 1, 2013, Jan. 29, 2014 or Jan. 27, 2015
Initial index level:	1,318.43
Barrier level:	922.90, 70% of initial level
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	4042K1VF7

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