New Issue: HSBC prices $11.24 million PLUS linked to S&P 500, Russell 2000, iShares MSCI EAFE

By Angela McDaniels

Tacoma, Wash., Aug. 30 - HSBC USA Inc. priced $11.24 million of 0% Performance Leveraged Upside Securities due Oct. 1, 2012 linked to a basket of two indexes and an exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the S&P 500 index with a 60% weight, the Russell 2000 index with a 20% weight and the iShares MSCI EAFE index fund with a 20% weight.

The payout at maturity will be par of $10 plus triple any increase in the basket, subject to a maximum return of 19.5%. Investors will be fully exposed to any basket decline.

HSBC Securities (USA) Inc. is the agent. It will use all of its commission to pay a sales concession to Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Performance Leveraged Upside Securities
Underlying basket:	S&P 500 index (60% weight), Russell 2000 index (20% weight) and iShares MSCI EAFE index fund (20% weight)
Amount:	$11,243,500
Maturity:	Oct. 1, 2012
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par plus triple any increase in basket, up to maximum return of 19.5%; full exposure to any basket decline
Initial levels:	1,176.80 for S&P 500; 691.79 for Russell 2000; $51.69 for ETF
Pricing date:	Aug. 26
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	1.875%
Cusip:	40433C510

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