HSBC USA to price autocallable optimization securities linked to S&P 500 Financials index

By Angela McDaniels

Tacoma, Wash., March 12 - HSBC USA Inc. plans to price 0% autocallable optimization securities with contingent protection due Sept. 30, 2009 linked to the S&P 500 Financials index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called if the index closes at or above its initial level on any quarterly observation date. If the notes are called, the redemption amount will be par of $10 plus an annualized return that is expected to be 22% to 26%. The exact percent will be set at pricing.

If the notes are not called, the payout at maturity will be par unless the index closes below the trigger level, 50% of the initial level, during the life of the notes and finishes below the initial level, in which case investors will receive par minus the index decline.

The notes are expected to price on March 26 and settle on March 31.

UBS Financial Services Inc. and HSBC USA Inc. will be the underwriters.

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