New Issue: HSBC sells $460,000 best-of performance notes tied to iShares MSCI EAFE

By Marisa Wong

Madison, Wis., Nov. 2 - HSBC USA Inc. priced $460,000 of 0% best-of performance notes due Oct. 29, 2012 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the exchange-traded fund's share price falls below the barrier level - 75% of the initial price - during the life of the notes, the payout at maturity will be par plus the fund return, which could be positive or negative.

Otherwise, the payout will be par plus the greater of the fund return and a contingent minimum return of 11%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Best-of performance notes
Underlying fund:	iShares MSCI EAFE index fund
Amount:	$460,000
Maturity:	Oct. 29, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	If fund share price remains at or above barrier level throughout life of notes, par plus greater of fund return and 11%; otherwise, par plus fund return with exposure to any losses
Initial price:	$57.01
Barrier level:	$42.76, 75% of initial price
Pricing date:	Oct. 29
Settlement date:	Nov. 3
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%
Cusip:	4042K06Y6

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