HSBC plans autocallable notes on Market Vectors Gold Miners ETF

By Jennifer Chiou

New York, June 3 - HSBC USA Inc. plans to price 0% autocallable notes due June 30, 2011 linked to the Market Vectors Gold Miners exchange-traded fund, according to an FWP with the Securities and Exchange Commission.

If the ETF's shares close at or above the initial share price of any of the quarterly observation dates, the notes will be automatically called and investors will receive par plus an annualized call premium of 14% to 18%. The exact rate will be set at pricing.

The observation dates are Sept. 24, 2010, Dec. 27, 2010, March 28, 2011 and June 27, 2011.

If the notes are not called and the share price remains at or above 70% of the initial price, the payout at maturity will be par. If the share price is ever less than 70% of the initial price, a trigger event will have occurred and the payout will be par for losses up to 10%, with investors sharing in losses beyond the buffer.

The notes will price on June 24 and settle on June 29.

HSBC Securities (USA) Inc. is the agent.

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