HSBC plans 8%-10% autocallable yield notes linked to fund, two indexes

By Marisa Wong

Madison, Wis., May 25 - HSBC USA Inc. plans to price 8% to 10% autocallable yield notes due June 12, 2013 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly. The exact rate will be set at pricing.

The notes will be called at par if each underlying component closes at or above its initial level on any of four quarterly observation dates.

The payout at maturity will be par unless any component dips below the 60% trigger level during the life of the notes and finishes below the initial level, in which case investors will receive par plus the return of the worst-performing component.

HSBC Securities (USA) Inc. is the underwriter.

The notes (Cusip: 4042K1R39) will price on June 6 and settle on June 11.

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