HSBC to price 9% callable yield notes linked to fund, two indexes

By Marisa Wong

Madison, Wis., March 5 - HSBC USA Inc. plans to price callable yield notes due March 15, 2013 linked to the S&P MidCap 400 index, the Russell 2000 index and the iShares FTSE/Xinhua China 25 index fund, according to an FWP filing with the Securities and Exchange Commission.

The notes have a coupon of at least 9% that will be set at pricing. Interest is payable quarterly.

The notes are callable at par on any interest payment date beginning Sept. 17, 2012.

The payout at maturity will be par unless any component falls below the 62.5% trigger level on any day during the life of the notes and the final return of the least-performing component is zero or negative, in which case investors will receive par plus the return of the least-performing component.

The notes (Cusip: 4042K1ZN6) will price on March 12 and settle on March 15.

HSBC Securities (USA) Inc. is the agent.

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