New Issue: HSBC prices $4.19 million 12% autocallable yield notes linked to S&P 500, Russell 2000

By Jennifer Chiou

New York, Nov. 23 - HSBC USA Inc. priced $4.19 million of 12% autocallable yield notes due Nov. 27, 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 any of the quarterly observation dates.

The payout at maturity will be par unless either index finishes below 70% of its initial level during the life of the notes, in which case investors will receive par plus the return of the worst-performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$4,185,000
Maturity:	Nov. 27, 2012
Coupon:	12%, payable quarterly
Price:	Par
Payout at maturity:	If either index finishes below trigger level during life of notes, 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 Feb. 21, 2012, May 21, 2012, Aug. 21, 2012 or Nov. 21, 2012
Initial index levels:	1,192.98 for S&P 500 and 701.90 for Russell 2000
Trigger levels:	835.09 for S&P 500 and 491.33 for Russell 2000; 70% of initial levels
Pricing date:	Nov. 21
Settlement date:	Nov. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%
Cusip:	4042K1RL9

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