HSBC plans 0% autocallable notes linked to Berkshire Hathaway stock

By E. Janene Geiss

Philadelphia, Dec. 4 - HSBC USA Inc. plans to price 0% autocallable notes due Dec. 21, 2009 linked to the class B common stock of Berkshire Hathaway Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at increasing premiums if the stock is at or above its initial price on any of four valuation dates.

The redemption amount will be par plus 4% if the notes are called on March 16, 2009, par plus 8% if called on June 15, 2009, par plus 12% if called on Sept. 14, 2009 and par plus 16% if called on Dec. 14, 2009. The exact auto redemption amounts will be set at pricing.

If the notes are not called, investors will receive par if the stock price falls by up to 30% and will lose 1% for every 1% decline in the stock price beyond 30%.

The notes are expected to price Dec. 12 and settle Dec. 19.

HSBC Securities (USA) Inc. is the underwriter.

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