HSBC plans twin participation notes on iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., Feb. 29 - HSBC USA Inc. plans to price 0% twin participation notes due Sept. 6, 2013 linked to the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

A trigger event occurs if the exchange-traded fund's shares close below 70% of the initial share price on any day during the life of the notes.

If a trigger event has not occurred and the final share price is greater than the initial share price, the payout at maturity will be par plus the ETF gain, subject to a maximum return of 26%.

If a trigger event has not occurred and the final share price is less than or equal to the initial share price, the payout at maturity will be par plus the absolute value of the ETF return.

If a trigger event has occurred, investors will receive par plus the lesser of the index return and 26%. In this case, the payout could be less than par.

The notes (Cusip: 4042K1YN7) will price March 1 and settle March 6.

HSBC Securities (USA) Inc. is the agent.

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