HSBC to sell barrier multi-coupon CDs linked to Russell 2000 index

By Susanna Moon

Chicago, May 4 - HSBC USA Inc. plans to price 0% barrier multi-coupon opportunity certificates of deposit due May 28, 2013 based on the performance of the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be any gain in the index, up to a trigger point. If the index rises above its trigger level during the year preceding the coupon valuation date, the coupon will be zero. Interest will be payable annually.

The trigger level will be 115% of the initial index level until May 24, 2011, 120% to 125% from May 25, 2011 through May 23, 2012 and 130% beginning May 24, 2012. The exact barrier for years two and three will be set at pricing.

The payout at maturity will be par.

The notes are putable on June 30, 2011 and June 30, 2012.

The notes are expected to price on May 24 and settle on May 27.

HSBC Securities (USA) Inc. is the agent.

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