HSBC USA plans to price one-year gold participation notes with cap

By Jennifer Chiou

New York, Dec. 7 - HSBC USA Inc. plans to price 0% gold participation notes due 2011 linked to the price of gold, according to an FWP with the Securities and Exchange Commission.

If the final price of gold is greater than the initial price of gold, the payout at maturity will be par plus the gold return. The return will be subject to a cap of 16% to 18% that will be set at pricing.

If the gold return is between zero and negative 15%, the payout will be par.

If the gold return is less than or equal to negative 15%, the payout will be par plus the gold return.

The notes (Cusip: 4042K1BM4) will price and settle in December.

HSBC Securities (USA) Inc. is the agent.

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