New Issue: HSBC prices $507,000 9% autocallable yield notes on S&P, Russell 2000

By Jennifer Chiou

New York, April 27 - HSBC USA Inc. priced $507,000 of 9% autocallable yield notes due April 18, 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 July 18, Oct. 18, Jan. 18, 2012 or April 18, 2012.

The payout at maturity will be par unless either index falls below its trigger level - 80% 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, up to a maximum payout of par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$507,000
Maturity:	April 18, 2012
Coupon:	9%, payable quarterly
Price:	Par
Payout at maturity:	If either index falls below its trigger level during the life of the notes, par plus the return of the worst-performing index, capped at par; otherwise, par
Call:	At par if both indexes close at or above their initial levels on July 18, Oct. 18, Jan. 18, 2012 or April 18, 2012
Initial index levels:	1,335.25 for S&P 500 and 844.23 for Russell 2000
Trigger levels:	1,068.20 for S&P 500 and 675.38 for Russell 2000; 80% of initial levels
Pricing date:	April 25
Settlement date:	April 28
Agent:	HSBC Securities (USA) Inc.
Fees:	0.6%
Cusip:	4042K1FN8

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