New Issue: HSBC prices $1 million gold participation securities

By Angela McDaniels

Tacoma, Wash., March 7 - HSBC USA Inc. priced $1 million of 0% gold participation securities due Sept. 10, 2013, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any percentage increase in the price of gold, subject to a maximum return of 18.25%. Investors will receive par if the price of gold falls by up to 10% and will be exposed to losses from the initial level if it falls by more than 10%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Gold participation securities
Underlying commodity:	Gold
Amount:	$1 million
Maturity:	Sept. 10, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any percentage increase in price of gold, up to maximum return of 18.25%; par if gold declines by 10% or less; full exposure to decline from initial price if gold declines by more than 10%
Initial gold price:	$1,705.00
Pricing date:	March 5
Settlement date:	March 8
Underwriter:	HSBC Securities (USA) Inc.
Fees:	1%
Cusip:	4042K1YP2

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