New Issue: HSBC USA prices $1.91 million one-year gold participation notes

By Angela McDaniels

Tacoma, Wash., Dec. 22 - HSBC USA Inc. priced $1.91 million of 0% gold participation notes due Dec. 28, 2011 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

If the final price of gold is greater than the initial price of gold, the payout at maturity will be par plus the lesser of the gold return and 16%.

If the gold return is between zero and negative 15%, the payout will be par.

If the gold return is less than or equal to negative 15%, the payout will be par plus the gold return.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Participation notes
Underlying commodity:	Gold
Amount:	$1,193,000
Maturity:	Dec. 28, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If final gold price is greater than initial price, par plus return, capped at 16%; par if price declines by less than 15%; full exposure to decline if gold falls to or below trigger level
Initial price:	$1,383.00
Trigger level:	$1,175.55, 85% of initial price
Pricing date:	Dec. 20
Settlement date:	Dec. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	1%
Cusip:	4042K1BM4

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