HSBC plans absolute return barrier notes linked to S&P 500

By E. Janene Geiss

Philadelphia, May 12 - HSBC USA Inc. plans to price zero-coupon 100% principal protection absolute return barrier notes expected to mature May 14, 2009 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

As long as the index never closes above or below its initial level by more than a range amount, the payout at maturity will be par plus the absolute value of the final index return.

Otherwise, the payout will be par.

The range amount will be between 12% and 16%. The exact range will be set at pricing.

The notes are expected to price May 27 and settle May 30.

HSBC Securities (USA) Inc. is the underwriter.

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