New Issue: HSBC prices $10.93 million 12% autocallable yield notes linked to S&P 500, Russell 2000

By Susanna Moon

Chicago, Oct. 25 - HSBC USA Inc. priced $10.93 million of 12% autocallable yield notes due Oct. 31, 2012 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be called at par if each index closes at or above its initial level on Jan. 26, April 26, 2012, July 26, 2012 or Oct. 26, 2012.

The payout at maturity will be par unless either index dips below 60% of its initial level during the life of the notes and finishes below its initial level, in which case investors will receive par plus the return of the worst-performing index.

HSBC Securities (USA) Inc.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$10,928,000
Maturity:	Oct. 31, 2012
Coupon:	12%, payable quarterly
Price:	Par
Payout at maturity:	If either index finishes below its trigger level during life of notes and finishes below its initial level, par plus the return of the worst-performing index; otherwise, par
Call:	At par if both indexes close at or above their initial levels on Jan. 26, April 26, 2012, July 26, 2012 or Oct. 26, 2012
Initial index levels:	1,238.25 for S&P and 712.42 for Russell
Trigger levels:	742.95 for S&P and 427.45 for Russell; 60% of initial levels
Pricing date:	Oct. 21
Settlement date:	Oct. 26
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%
Cusip:	4042K1PR8

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