New Issue: HSBC prices $3.5 million return optimization securities with partial protection on iShares MSCI EAFE

By E. Janene Geiss

Philadelphia, Sept. 29 - HSBC USA Inc. priced $3.5 million of 0% return optimization securities with partial protection due March 31, 2011 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus double any gain on the fund, subject to a maximum return of 21.2%. Investors will receive par if the fund declines by 10% or less and will lose 1% for every 1% that the fund declines beyond 10%.

UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.

Issuer:	UBS AG
Issue:	Return optimization securities with partial protection
Underlying index:	iShares MSCI EAFE index fund
Amount:	$3,501,490
Maturity:	March 31, 2011
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus double any fund gain, up to maximum return of 21.2%; par if fund declines by 10% or less; 1% loss for every 1% decline beyond 10%
Initial fund price:	$54.25
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Underwriter:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	1.75%

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