HSBC plans barrier multi-coupon opportunity CDs linked to Market Vectors Gold Miners

By Angela McDaniels

Tacoma, Wash., March 2 - HSBC Bank USA, NA plans to price 0% barrier multi-coupon opportunity certificates of deposit due March 28, 2013 linked to the Market Vectors Gold Miners exchange-traded fund, according to a term sheet.

The CDs will pay a coupon in March of each year. If the fund's share price remained at or below the barrier level throughout the previous year, the coupon will be equal to the greater of the fund return and zero. If the share price was ever above the barrier, the coupon will be equal to the rebate return.

The barrier is 120% of the initial share price for the first year and will increase to 130% of the initial price in the second year and to 140% in the third year. The rebate return is expected to be 0.5% to 1% and will be set at pricing.

The payout at maturity will be par.

The CDs will be putable on April 29, 2011 and April 30, 2012. The redemption amount will be the then-current market value of the CDs.

The CDs will price March 25 and settle March 30.

HSBC Securities (USA) Inc. is the agent.

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