HSBC plans to price one-year buffered notes linked to four currencies

By Susanna Moon

Chicago, Dec. 14 - HSBC USA Inc. plans to price 0% notes due Dec. 31, 2012 linked to a basket of equally weighted currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The underlying currencies are the Brazilian real, Singapore dollar, Indonesian rupiah and Chinese renminbi.

If the basket return is more than 12.4%, the payout at maturity will be par plus the basket gain.

If the basket return is 6.2% to 12.4%, the payout will be $1,124 for each $1,000 principal amount of notes.

If the basket gains by up to 6.2%, the payout will be $1,062 for each $1,000 of notes.

Investors will receive par if the basket falls by up to 10% and will lose 1.11111% for each 1% decline beyond 1%.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC will handle distribution.

The notes will price on Dec. 16 and settle on Dec. 23.

The Cusip number is 4042K1UH4.

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