New Issue: HSBC USA prices $21.07 million absolute return barrier notes linked to Russell 2000 via UBS

By Angela McDaniels

Tacoma, Wash., July 31 - HSBC USA Inc. priced $21.07 million of zero-coupon 100% principal protection absolute return barrier notes due Jan. 29, 2010 linked to the Russell 2000 index via UBS Financial Services Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes above the upper barrier or below the lower barrier on any day during the life of the notes, the payout at maturity will be par of $10. If not, the payout will be par plus the absolute value of the index return.

The upper and lower barriers are 28.5% above and below the initial index level, respectively.

Issuer:	HSBC USA Inc.
Issue:	100% principal protection absolute return barrier notes
Underlying index:	Russell 2000
Amount:	$21,070,290
Maturity:	Jan. 29, 2010
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index ever closes above upper barrier or below lower barrier, par; if not, par plus absolute value of index return
Initial index level:	696.11
Upper index barrier:	894.50, 128.5% of initial level
Lower index barrier:	497.72, 71.5% of initial level
Pricing date:	July 28
Settlement date:	July 31
Underwriter:	UBS Financial Services Inc.
Fees:	1.75%

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