New Issue: HSBC prices $11.83 million one-year PLUS tied to S&P 500 with 15.1% cap

By E. Janene Geiss

Philadelphia, July 27 - HSBC USA Inc. priced $11.83 million of 0% Performance Leveraged Upside Securities due Aug. 28, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus double any gain in the index, up to a maximum of $11.51 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:	Performance Leveraged Upside Securities
Underlying index:	S&P 500 index
Amount:	$11,825,550
Maturity:	Aug. 28, 2012
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par plus 200% of any gain in the index, up to 15.1% maximum return; exposure to any losses
Initial index level:	1,337.43
Pricing date:	July 25
Settlement date:	July 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2% to be paid to Morgan Stanley Smith Barney LLC
Cusip:	40433C734

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