New Issue: HSBC prices $8,000 more contingent income autocallables linked to Schlumberger

By Angela McDaniels

Tacoma, Wash., Feb. 5 - HSBC USA Inc. priced $8,000 principal amount of additional contingent income autocallable securities due Feb. 5, 2014 linked to the common stock of Schlumberger Ltd., according to a 424B3 filing with the Securities and Exchange Commission.

The company priced $3.23 million of the notes on Jan. 31. The total issue size is now $3.24 million.

If Schlumberger stock closes at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, investors will receive a contingent payment of $0.16 for each $10.00 note. Otherwise, no contingent payment will be made for that period.

If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Schlumberger shares equal to the principal amount of notes divided by the initial share price or, at the issuer's option, the cash value of those shares.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Contingent income autocallable securities
Underlying stock:	Schlumberger Ltd. (Symbol: SLB)
Amount:	$3,238,930, increased from $3,230,930
Maturity:	Feb. 5, 2014
Coupon:	1.6% if closing price is at least 80% of initial price on quarterly determination date; otherwise, none
Price:	Par of $10.00
Payout at maturity:	If final share price is at least 80% of initial price, par plus contingent quarterly payment; otherwise, number of Schlumberger shares equal to $10.00 divided by initial share price, or, at HSBC's option, equivalent cash amount of those shares
Call:	Automatically at par plus contingent payment if closing share price is greater than or equal to initial share price on April 30, July 31 or Oct. 31, 2013
Initial share price:	$78.05
Downside threshold level:	$62.44, 80% of initial share price
Pricing date:	Jan. 31
Upsized:	Feb. 4
Settlement date:	Feb. 5
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	1.5%, used for selling concessions
Cusip:	40433T356

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