HSBC plans coupon-bearing notes tied to Ford via Bank of America

By Marisa Wong

Madison, Wis., Nov. 20 - HSBC USA Inc. plans to price coupon-bearing notes due December 2014 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly at a rate of 6% to 7% per year. The exact rate will be set at pricing.

If the final price of Ford stock is greater than or equal to 95% of the initial price, the payout at maturity will be par of $10.

Investors will share in losses beyond the 95% threshold value.

The notes are expected to price in November and settle in December.

BofA Merrill Lynch is the underwriter.

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