New Issue: HSBC sells $400,000 95% protected notes tied to four currencies vs. euro

By Jennifer Chiou

New York, March 26 - HSBC USA Inc. priced $400,000 of zero-coupon 95% principal-protected notes due April 5, 2013 linked to a basket of equally weighted currencies relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying currencies are the Brazilian real, Australian dollar, Norwegian krone and Canadian dollar.

If the basket return is positive, the payout at maturity will be par plus the greater of a digital coupon rate of 17% and the basket gain.

Otherwise, the payout will be the greater of par plus the basket return and 95% of par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	95% principal-protected notes
Underlying currencies:	Brazilian real, Australian dollar, Norwegian krone and Canadian dollar, equally weighted
Amount:	$400,000
Maturity:	April 5, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	If basket return is positive, par plus the greater of any basket gain or 17%; floor of 95% of par
Initial spot rates:	2.4051 for real, 1.4619 for Australian dollar, 8.077 for krone and 1.359 for Canadian dollar
Pricing date:	March 25
Settlement date:	April 6
Agent:	HSBC Securities (USA) Inc.
Fees:	1.25%
Cusip:	4042K0T54

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