New Issue: HSBC prices $11 million 8.74% callable yield notes due 2014 linked to fund, two indexes

By Toni Weeks

San Diego, June 26 - HSBC USA Inc. priced $11 million of 8.74% callable yield notes due Dec. 29, 2014 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes are callable at par on any interest payment date.

The payout at maturity will be par unless any component falls below its trigger level - 55% of its initial level - on the Dec. 23, 2014 final valuation date, in which case investors will receive par plus the return of the worst-performing component.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable yield notes
Underlying components:	S&P 500 index, Russell 2000 index and iShares MSCI EAFE index fund
Amount:	$11 million
Maturity:	Dec. 29, 2014
Coupon:	8.74%, payable quarterly
Price:	Par
Payout at maturity:	Par unless any component falls below the 55% trigger level on Dec. 23, 2014, in which case par plus return of least-performing component
Initial levels:	1,335.02 for S&P 500, 775.16 for Russell and $48.49 for MSCI EAFE
Trigger levels:	55% of initial levels
Call option:	At par on any quarterly interest payment date beginning Sept. 28
Pricing date:	June 22
Settlement date:	June 27
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%
Cusip:	4042K1T60

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