HSBC plans 13-month PLUS based on S&P 500 index with 12% to 15% cap

By Susanna Moon

Chicago, Jan. 27 - HSBC USA Inc. plans to price 0% Performance Leveraged Upside Securities due March 26, 2012 based on the performance of the S&P 500 index, according to an FWP with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus triple any gain in the index, up to a maximum of $11.20 to $11.50 per note. The exact cap will be set at pricing.

Investors will be exposed to any losses.

The notes (Cusip: 40432R245) will price on Feb. 22 and settle on Feb. 25.

HSBC Securities (USA) Inc. is the agent. It will use all of the fees to pay a sales commission to Morgan Stanley Smith Barney LLC.

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