New Issue: HSBC prices $4.36 million trigger notes linked to three funds

By Toni Weeks

San Diego, May 27 - HSBC USA Inc. priced $4.36 million of 0% trigger return optimization securities due May 30, 2014 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the SPDR Trust Series 1 with a 30% weight, the iShares MSCI EAFE index fund with a 30% weight and the iShares MSCI Emerging Markets index fund with a 40% weight.

The payout at maturity will be par of $10 plus double any increase in the basket, subject to a maximum return of 37.5%. Investors will receive par if the basket falls by 25% or less and will be fully exposed to the decline from the initial level if the basket falls beyond 25%.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Trigger return optimization securities
Underlying funds:	SPDR Trust Series 1 with a 30% weight, iShares MSCI EAFE index fund with a 30% weight, iShares MSCI Emerging Markets index fund with a 40% weight
Amount:	$4,359,300
Maturity:	May 30, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	Par of $10 plus double any increase in basket, subject to maximum return of 37.5%; par if basket falls by up to 25%; full exposure to losses if basket falls beyond 25%
Initial index level:	$132.37 for SPDR Trust, $59.80 for iShares MSCI EAFE fund, $46.66 for EM fund
Trigger level:	75% of initial price
Pricing date:	May 25
Settlement date:	May 31
Agent:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	90267F444

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