HSBC plans 10%-14% autocallable yield notes on metals, mining ETFs

By Jennifer Chiou

New York, Jan. 31 - HSBC USA Inc. plans to price 10% to 14% autocallable yield notes due Feb. 24, 2012 linked to the SPDR S&P Metals & Mining exchange-traded fund and the Market Vectors Gold Miners ETF, according to an FWP with the Securities and Exchange Commission.

The coupon will be payable quarterly, with the exact rate to be set at pricing.

The notes will be called at par plus accrued interest if the funds close above their initial levels on any quarterly observation date.

A trigger event will occur if either fund falls below the trigger level - 70% of the initial level - on any trading day.

If a trigger event does not occur or if a trigger event occurs but the least-performing fund gains, the payout at maturity will be par.

If a trigger event occurs and the return of the least-performing fund is negative, investors will share in those losses.

The notes (Cusip: 4042K1CX9) will price on Feb. 18 and settle on Feb. 24.

HSBC Securities (USA) Inc. is the agent.

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