New Issue: HSBC sells $29.91 million two-year PLUS linked to S&P 500 with 15% cap

By Susanna Moon

Chicago, Dec. 30 - HSBC USA Inc. priced $29.91 million of 0% buffered Performance Leveraged Upside Securities due Jan. 30, 2012 based on the performance of the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus triple any gain in the index, up to a maximum of $11.50 per note.

Investors will be exposed to any losses.

HSBC Securities (USA) Inc. is the agent. It will use all of the fees to pay a sales commission to Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Buffered Performance Leveraged Upside Securities
Underlying index:	S&P 500
Amount:	$29,913,800
Maturity:	Jan. 30, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 300% of any index gain, capped at 15%; exposure to any losses
Initial index level:	1,257.54
Pricing date:	Dec. 27
Settlement date:	Dec. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	2% to be paid to Morgan Stanley Smith Barney LLC
Cusip:	40432R369

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