New Issue: HSBC prices $18.56 million buffered PLUS linked to iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., March 1 - HSBC USA Inc. priced $18.56 million of 0% buffered Performance Leveraged Upside Securities due Aug. 29, 2013 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus double any increase in the exchange-traded fund's share price, subject to a maximum return of 19%. Investors will receive par if the share price falls by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

HSBC Securities (USA) Inc. is the underwriter. Distribution is through Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Buffered Performance Leveraged Upside Securities
Underlying ETF:	iShares MSCI Emerging Markets index fund
Amount:	$18,561,590
Maturity:	Aug. 29, 2013
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par plus 200% of any ETF gain, up to maximum return of 19%; par if share price falls by 10% or less; 1% loss for each 1% decline beyond 10%
Initial share price:	$44.36
Pricing date:	Feb. 28
Settlement date:	March 2
Underwriter:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	2%
Cusip:	40433K579

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