New Issue: HSBC prices $66.8 million Stars linked to S&P 500 index

By Angela McDaniels

Tacoma, Wash., April 2 - HSBC USA Inc. priced $66.8 million of 0% Strategic Accelerated Redemption Securities due April 8, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the underwriter.

If the index closes at or above the initial index level on any of three observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 7.65%. The observation dates are Sept. 25, 2012, Dec. 18, 2012 and April 1, 2013.

If the notes are not called, the payout at maturity will be par if the final index level is at least 95% of the initial level. Otherwise, investors will lose 1% for every 1% that the index declines beyond 5%.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$66,802,620
Maturity:	April 8, 2013
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final index level is at least 95% of initial level, par; otherwise, 1% loss for every 1% index decline beyond 5%
Call:	Automatically if index closes at or above initial index level on an observation date; payout will be $10.38250 if notes are called on Sept. 25, 2012, $10.57375 if called on Dec. 18, 2012 or $10.76500 if called on April 1, 2013
Initial index level:	1,403.28
Pricing date:	March 29
Settlement date:	April 5
Underwriters:	Bank of America Merrill Lynch
Fees:	1.25%
Cusip:	40433K256

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