HSBC to issue performance securities linked to three indexes

By Susanna Moon

Chicago, Oct. 26 - HSBC USA Inc. plans to price an issue of 0% performance securities with partial protection due Nov. 30, 2011 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 33.34% weight, the Dow Jones Euro Stoxx 50 index with a 33.33% weight and the Nikkei 225 index with a 33.33% weight.

The payout at maturity will be par plus a participation rate of between 107% and 117% of any basket gain, with the exact rate to be set at pricing.

If the basket level falls by up to 20%, the payout will be par. Beyond a 20% drop, investors will be exposed to any losses.

The notes are expected to price on Nov. 27 and settle on Nov. 30.

UBS Financial Services Inc. and HSBC USA Inc. will underwrite the offering.

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