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Published on 9/5/2012 in the Prospect News Structured Products Daily.

New Issue: HSBC prices $80,000 more income plus notes tied to five stocks

By Jennifer Chiou

New York, Sept. 5 - HSBC USA Inc. priced another $80,000 of income plus notes with minimum coupon due Sept. 3, 2019 linked to a basket of common stocks, bringing the total issue amount to $2.77 million, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Eli Lilly and Co., Lockheed Martin Corp., Procter & Gamble Co. and Verizon Communications Inc.

If every underlying stock closes above its initial level on the valuation date, the coupon will be 10.5%. Otherwise, the notes will pay the minimum coupon of 0.5%. Interest is payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:HSBC USA Inc.
Issue:Income plus notes
Underlying stocks:Altria Group, Inc. (Symbol: MO), Eli Lilly and Co. (Symbol: LLY), Lockheed Martin Corp. (Symbol: LMT), Procter & Gamble Co. (Symbol: PG) and Verizon Communications Inc. (Symbol: VZ)
Amount:$2.77 million (up from $2.69 million)
Maturity:Sept. 3, 2019
Coupon:If every underlying stock finishes above initial level, 10.5%; otherwise, 0.5%
Price:Par
Payout at maturity:Par
Initial prices:$34.51 for Altria, $44.71 for Eli Lilly, $92.48 for Lockheed Martin, $66.99 for Procter & Gamble and $42.67 for Verizon
Pricing dates:Aug. 28 for $2.69 million; Aug. 31 for $88,000
Settlement date:Aug. 31
Agent:HSBC Securities (USA) Inc.
Fees:4.2%
Cusip:4042K12V4

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