HSBC plans to price one-year Stars linked to Ford

By Toni Weeks

San Luis Obispo, Calif., Feb. 21 - HSBC USA Inc. plans to price 0% Strategic Accelerated Redemption Securities due March 2014 linked to Ford Motor Co. shares, according to an FWP filing with the Securities and Exchange Commission.

If the shares close at or above the initial share price on any of three observation dates, the notes will be called at par of $10 plus an annualized call premium of 11% to 15%. The observation dates will be in September 2013, December 2013 and March 2014. The actual call premium will be set at pricing.

If the notes are not called and the final share price is at least 95% of the initial price, the payout at maturity will be par. Investors will be exposed to losses beyond the 5% buffer.

The notes are expected to price and settle in March.

BofA Merrill Lynch is the underwriter.

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