HSBC plans to price Capped Leveraged Index Return Notes linked to gold

By Marisa Wong

Madison, Wis., Nov. 30 - HSBC USA Inc. plans to price Capped Leveraged Index Return Notes due February 2015 linked to the gold spot price, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus 200% of any gain in the gold price, subject to a maximum return of 16% to 20%. The exact cap will be determined at pricing.

Investors will receive par if the gold price falls by up to 5% and will be exposed to any losses beyond 5%.

The notes are expected to price and settle in January.

Bank of America Merrill Lynch is the agent.

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