HSBC plans 8% autocallable yield notes linked to S&P 500, Russell 2000

By Susanna Moon

Chicago, Dec. 2 - HSBC USA Inc. plans to price autocallable yield notes due June 22, 2012 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly and will be at least 8% per year.

A trigger event occurs if either index ever closes below the trigger level - 65% of the initial level - during the life of the notes.

The notes will be called at par if each index closes at or above its initial level on any of three quarterly observation dates. They are Feb. 16, April 19 and June 19, 2012.

The payout at maturity will be par unless either index ever dips below the trigger level and finishes below the initial level, in which case investors will receive par plus the return of the worst-performing index.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Dec. 19 and settle on Dec. 22.

The Cusip number is 4042K1UE1.

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