New Issue: HSBC prices $7.21 million contingent return optimization securities linked to S&P 500

By Toni Weeks

San Diego, May 30 - HSBC USA Inc. priced $7.21 million of 0% contingent return optimization securities due May 30, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is at least 75% of the initial level, the payout at maturity will be par of $10 plus the greater between the 6% contingent return and the index return, subject to a maximum return of 43%.

If the final index level is less than 75% of the initial level, investors will be fully exposed to the decline.

HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent return optimization securities
Underlying index:	S&P 500 index
Amount:	$7,212,240
Maturity date:	May 30, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is at least 75% of initial level, par plus greater of 6% and index return, capped at 43%; full exposure to losses
Initial level:	1,317.82
Trigger level:	988.37, 75% of initial level
Pricing date:	May 25
Settlement date:	May 31
Underwriter:	HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
Fees:	2%
Cusip:	40433M781

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