HSBC to price barrier optimization securities linked to S&P 500 via UBS

By Angela McDaniels

Tacoma, Wash., April 30 - HSBC USA Inc. plans to price 0% barrier optimization securities with partial protection due Aug. 20, 2010 linked to the S&P 500 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 closes above the barrier - 145% to 152% of the initial index level - during the life of the notes, the payout at maturity will be par of $10 plus 11%. The exact barrier will be set at pricing.

If the index does not close above the barrier level during the life of the notes, the payout will be:

• Par plus any positive index return;

• Par if the index return is between 0% and negative 15%; or

• Par minus 1% for every 1% that the index return is less than negative 15%.

The notes are expected to price May 15 and settle May 20.

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