HSBC plans autocallable optimization notes on Financial SPDR via UBS

By Jennifer Chiou

New York, June 17 - HSBC USA Inc. plans to price 0% autocallable optimization securities with contingent protection due July 1, 2011 linked to the Financial Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund closes above its initial share price on any monthly observation date, the notes will be called and investors will receive par of $10 plus an annualized return of 15% to 20%, with the exact percentage to be set at pricing.

The payout at maturity will be par if the final share price is at least 75% of the initial price. Otherwise, investors will receive par plus the share price return.

The notes are expected to price on June 25 and settle on June 30.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

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