HSBC amends plan for equity buffer notes linked to Financial Select Sector SPDR

By Laura Lutz

Des Moines, Jan. 30 - HSBC USA Inc. raised the minimum expected pariticipation rate for its planned issue of 0% equity buffer notes due Nov. 17, 2010 linked to shares of the Financial Select Sector SPDR exchange traded fund, according to an FWP filing with the Securities and Exchange Commission.

The participation rate is now expected to be between 105% and 120%. The exact participation rate will be set at pricing.

When the offering was first announced on Tuesday, the participation rate was expected to be between 100% and 120%.

If the final share price is at least the initial price, the payout at maturity will be par plus any increase in the share price times the participation rate.

If the share price declines by up to 10%, the payout will be par. Investors will lose 1% for each 1% that the shares decline past 10%.

The notes are expected to price on Feb. 12 and settle on Feb. 15.

HSBC Securities (USA) Inc. will be the agent.

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