New Issue: HSBC sells $57.19 million one-year Stars on S&P 500 with 95% trigger via Merrill

By Marisa Wong

Madison, Wis., Jan. 30 - HSBC USA Inc. priced $57.19 million of 0% Strategic Accelerated Redemption Securities due Feb. 5, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 10% if the index closes at or above its initial level on any of the call dates, which are July 30, Oct. 9, 2012 and Jan. 29, 2013.

If the notes are not called and the index falls by up to 5%, the payout at maturity will be par. Investors will lose 1% for every 1% decline beyond 5%.

Bank of America Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500 index
Amount:	$57,194,890
Maturity:	Feb. 5, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	Par for index declines of up to 5%; 1% loss for each 1% drop below threshold level
Call:	At par plus 10% per year if the index closes at or above its initial level on July 30, Oct. 9, 2012 or Jan. 29, 2013
Initial level:	1,318.43
Threshold level:	1,252.51, 95% of initial level
Pricing date:	Jan. 26
Settlement date:	Feb. 2
Agent:	Bank of America Merrill Lynch
Fees:	1.25%
Cusip:	40433K660

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