HSBC plans knock-out buffer notes due 2014 linked to four currencies

By Susanna Moon

Chicago, Oct. 10 - HSBC USA Inc. plans to price 0% knock-out buffer notes due April 21, 2014 linked to a basket of four equally weighted currencies relative to the dollar, according to an FWP with the Securities and Exchange Commission.

The underlying currencies are the Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgit.

If the basket falls by more than 10%, the payout at maturity will be par plus the return, with exposure to any losses.

Otherwise, the payout will be par plus any gain, with a contingent minimum return of at least 10.4%. The exact floor will be set at pricing.

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

The notes will price on Oct. 12 and settle on Oct. 19.

The Cusip number is 4042K16Z1.

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