HSBC to price performance securities linked to index basket

By Jennifer Chiou

New York, Nov. 8 - HSBC USA Inc. plans to price 0% performance securities with contingent protection due Nov. 14, 2012 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 with a 35% weight, the Dow Jones Euro Stoxx 50 with a 15% weight, the Nikkei 225 with a 15% weight, the Nasdaq 100 with a 10% weight, the FTSE 100 with a 10% weight, the MSCI Emerging Markets with a 5% weight, the Hang Seng China Enterprises with a 5% weight and the Kospi 200 with a 5% weight.

If the basket performance is positive, investors will receive par plus the return on the basket times a participation rate that will be between 111% and 115%. The exact participation rate will be set at pricing.

If the basket return is negative and the basket level never closes below the 50% trigger level, investors will receive par.

If the basket return is negative and the level does close below the trigger level during the observation period, investors will share in any losses.

The notes will price on Nov. 9 and settle on Nov. 14.

UBS Financial Services, Inc. and HSBC Securities (USA) Inc. will be the underwriters.

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