HSBC plans 9%-12% one-year autocallable yield notes on three funds

By Susanna Moon

Chicago, July 6 - HSBC USA Inc. plans to price 9% to 12% autocallable yield notes due July 19, 2012 linked to the SPDR S&P Metals & Mining exchange-traded fund, the Oil Service Holdrs Trust and the Market Vectors Agribusiness ETF, according to an FWP with the Securities and Exchange Commission.

Interest will be payable quarterly.

The notes will be called at par if the underlying components close at or above their initial levels on any quarterly observation date.

A trigger event will occur if any fund closes below 70% of its initial level during the life of the notes.

The payout will be par if a trigger event does not occur or if a trigger event does occur but the return of the worst performing fund is positive.

If a trigger event occurs and the return of the worst performing component is negative, investors will share in the decline of that fund.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 22 and settle on July 27.

The Cusip is 4042K1KQ5.

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