HSBC to price barrier rebate CDs linked to Market Vectors Gold Miners

By Angela McDaniels

Tacoma, Wash., July 12 - HSBC Bank USA, NA plans to price 0% barrier rebate certificates of deposit due July 29, 2013 linked to the Market Vectors Gold Miners exchange-traded fund, according to a term sheet.

If the ETF's share price remains at or below 140% of the initial share price throughout the life of the CDs, the payout at maturity will be par plus the fund return, subject to a floor of par.

If the share price breaches the barrier level, the payout will be par plus the rebate return, which is expected to be 2% to 4% and will be set at pricing.

The CDs will be putable on July 30, 2011 and July 30, 2012. Investors will receive the market value of the CDs.

The CDs (Cusip: 40431GBP3) will price July 22 and settle on July 27.

HSBC Securities (USA) Inc. is the agent.

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