HSBC plans autocallable optimization securities tied to AIG via UBS

By Jennifer Chiou

New York, Oct. 14 - HSBC USA Inc. plans to price 0% autocallable optimization securities with contingent protection due Oct. 24, 2011 linked to the common stock of American International Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

If AIG stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called and investors will receive par of $10 plus an annualized call return of 29.4%.

If the notes are not called, the payout at maturity will be par if the final share price is at least 75% of the initial price. Otherwise, investors will receive par plus the stock return.

The notes (Cusip: 40432R484) are expected to price on Oct. 15 and settle on Oct. 21.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

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