HSBC plans barrier optimization securities linked to S&P via UBS

By E. Janene Geiss

Philadelphia, Nov. 26 - HSBC USA Inc. plans to price barrier optimization securities with partial protection due Dec. 23, 2009 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.

If the index ever closes above the return barrier, the payout will be par plus a conditional coupon of 4%. The return barrier will be 41% to 47% above the initial index level. The exact barrier will be set at pricing.

If the index never closes above the return barrier during the life of the notes, the payout at maturity will be par of $10 plus any on the index. Investors will receive par if the index stays the same or declines by less than 25% and lose 1% for every 1% the index declines beyond 25%.

The notes are expected to price on Dec. 15 and settle on Dec. 18.

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