HSBC USA plans return optimization notes linked to Nasdaq 100 via UBS

By Laura Lutz

Des Moines, April 2 - HSBC USA Inc. plans to price 0% return optimization securities with contingent protection due April 7, 2010 linked to the Nasdaq 100 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 return is zero or positive, the payout at maturity will be par plus 200% of any index gain, capped at a maximum payout equal to 136% of par.

If the index return is negative and the index stays at or above its trigger level - 75% of its initial level - during the life of the notes, the payout will be par.

If the index return is negative and the index closes below its trigger level at any time, the payout will be par times the final index performance.

The notes are expected to price on April 2 and settle on April 7.

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