New Issue: HSBC prices $1.29 million trigger autocallable securities tied to SPDR S&P 500 ETF Trust

By Toni Weeks

San Diego, July 30 - HSBC USA Inc. priced $1.29 million of 0% trigger autocallable optimization securities due July 31, 2017 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.

If the closing share price is greater than the initial price on any quarterly observation date after one year, the notes will be called at par plus an annualized call return of 8.01%.

If the notes are not called and the final price is greater than or equal to 70% of the initial level, the payout at maturity will be par. Otherwise, investors will share fully in losses.

HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services is the agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger autocallable optimization securities
Underlying fund:	SPDR S&P 500 ETF Trust
Amount:	$1,285,240
Maturity:	July 31, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final price is at least 70% of initial level, par; otherwise, full exposure to losses
Call:	Automatically at par plus 8.01% per year if shares close at or above initial level on any quarterly observation date after one year; first observation date is Aug. 1, 2013
Initial price:	$138.80
Trigger price:	$97.16, 70% of initial price
Pricing date:	July 27
Settlement date:	July 31
Underwriter:	HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
Fees:	2.5%
Cusip:	40433M351

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