HSBC to price 7.5%-10% yield optimization notes linked to Weatherford

By Angela McDaniels

Tacoma, Wash., Dec. 9 - HSBC USA Inc. plans to price yield optimization notes with contingent protection due June 22, 2011 linked to the common stock of Weatherford International Ltd., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 7.5% to 10%. The exact rate will be set at pricing. Interest will be payable monthly.

The face amount of each note will be equal to the initial share price of Weatherford stock.

The payout at maturity will be par unless the final price of Weatherford stock is less than 75% of the initial share price, in which case investors will receive one Weatherford share per note.

The notes (Cusip 40432R294) are expected to price Dec. 16 and settle Dec. 22.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

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