New Issue: HSBC prices $5.6 million contingent return optimization securities linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., July 30 - HSBC USA Inc. priced $5.6 million of 0% contingent return optimization securities due July 31, 2015 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is at least 75% of the initial level, the payout at maturity will be par of $10 plus the greater of 5% and the index return, subject to a maximum return of 18%.

If the final index level is less than 75% of the initial level, investors will be fully exposed to the decline.

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

Issuer:	HSBC USA Inc.
Issue:	Contingent return optimization securities
Underlying index:	Russell 2000
Amount:	$5,595,830
Maturity date:	July 31, 2015
Coupon:	0%
Price:	Par of $10.00 for brokerage accounts; $9.80 for advisory accounts
Payout at maturity:	If final index level is greater than or equal to trigger level, par plus greater of 5% and index return, up to maximum return of 18%; full exposure to losses if final index level is less than trigger level
Initial index level:	1,048.51
Trigger level:	786.38, 75% of initial level
Pricing date:	July 26
Settlement date:	July 31
Underwriter:	HSBC Securities (USA) Inc.
Agent:	UBS Financial Services Inc.
Fees:	2% for brokerage accounts; none for advisory accounts
Cusip:	40433X480

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