HSBC plans buffered return optimization notes tied to S&P MidCap 400

By Toni Weeks

San Diego, July 5 - HSBC USA Inc. plans to price buffered return optimization securities due July 31, 2013 linked to the S&P MidCap 400 index, according to an FWP filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC Securities (USA) are the underwriters.

The payout at maturity will be par of $10 plus 1.25 times any gain in the index, up to a maximum return of 17% to 21%. The exact cap will be set at pricing.

Investors will receive par if the index falls by up to 10% and will be exposed to any losses beyond 10%.

The notes (Cusip: 40433C676) are expected to price July 26 and settle July 29.

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