HSBC to price knock-out buffer notes linked to three currencies

By Angela McDaniels

Tacoma, Wash., Nov. 17 - HSBC USA Inc. plans to price 0% knock-out buffer notes due Dec. 5, 2012 linked to a basket of currencies, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes the Brazilian real, the Mexican peso and the Chilean peso. The basket's level will increase if it appreciates relative to the dollar.

If the closing level of the basket on Nov. 28, 2012 is less than 75% of the initial basket level, investors will be fully exposed to the percentage decline of the basket. Otherwise, the payout at maturity will be par plus the greater of the basket return and the contingent minimum return, which is expected to be at least 9.05% and will be set at pricing.

The notes (Cusip: 4042K1SZ7) will price Nov. 18 and settle Nov. 28.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.

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