HSBC plans three-year barrier rebate CDs linked to Market Vectors Gold Miners

By Angela McDaniels

Tacoma, Wash., June 2 - HSBC Bank USA, NA plans to price barrier rebate certificates of deposit due June 25, 2013 linked to the Market Vectors Gold Miners exchange-traded fund, according to a term sheet.

If the ETF's share price remains at or below 140% of the initial share price throughout the life of the CDs, the payout at maturity will be par plus the fund return, subject to a floor of par.

If the share price breaches the barrier level, the payout will be par plus the rebate return, which is expected to be 2% to 4% and will be set at pricing.

The CDs will be putable at their market value on June 30, 2011 and June 30, 2012.

The CDs (Cusip: 40431GAU3) will price June 22 and settle on June 25.

HSBC Securities (USA) Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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