New Issue: HSBC prices $7.13 million 7% autocallable yield notes linked to S&P 500, Russell

By Marisa Wong

Madison, Wis., Aug. 28 - HSBC USA Inc. priced $7.13 million of 7% autocallable yield notes due Aug. 30, 2013 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be called at par if both indexes close at or above their initial levels on any quarterly call observation date.

The payout at maturity will be par unless either index closes below its trigger level, 70% of its initial level, during the life of the notes and the return of the worst-performing index is negative, in which case investors will receive par plus the return of the worst-performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$7,128,000
Maturity:	Aug. 30, 2013
Coupon:	7%, payable quarterly
Price:	Par
Payout at maturity:	Par unless either index closes below trigger level during life of notes and return of worst-performing index is negative, in which case par plus return of worst-performing index
Call:	At par if both indexes close at or above their initial levels on Nov. 27, Feb. 26, May 24, 2013 or Aug. 27, 2013
Initial index levels:	1,411.13 for S&P 500 and 809.19 for Russell 2000
Trigger level:	70% of initial level
Pricing date:	Aug. 24
Settlement date:	Aug. 29
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%
Cusip:	4042K12L6

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