HSBC USA to price autocallable optimization securities linked to Market Vectors Agribusiness ETF

By Susanna Moon

Chicago, July 9 - HSBC USA Inc. plans to price 0% autocallable optimization securities with contingent protection due Jan. 29, 2010 linked to the Market Vectors Agribusiness exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called if the fund 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 18% to 20%. The exact percentage will be set at pricing.

If the notes are not called, the payout at maturity will be par unless the fund closes below the trigger level, 70% 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 fund decline.

The notes are expected to price on July 28 and settle on July 31.

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

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