HSBC USA to price performance securities linked to six indexes via UBS

By Angela McDaniels

Tacoma, Wash., Aug. 27 - HSBC USA Inc. plans to price 0% performance securities with contingent protection due Sept. 30, 2013 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the Dow Jones Euro Stoxx 50 index with a 35% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the MSCI Emerging Markets index with a 5% weight.

If the final basket return is positive, the payout at maturity will be par of $10 plus 130% to 140% of the basket return. The exact participation rate will be set at pricing.

If the final basket return is negative, the payout will be par if the basket never closes below the trigger level - 50% of the initial level - during the life of the notes. Otherwise, investors will receive par plus the final basket return.

The notes are expected to price on Sept. 25 and settle on Sept. 30.

UBS Financial Services Inc. is the underwriter.

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