HSBC plans notes due 2013 on three buffered return enhanced indexes

By Susanna Moon

Chicago, Aug. 22 - HSBC USA Inc. plans to price 0% notes due Sept. 11, 2013 linked to a weighted basket of three buffered return enhanced components, according to an FWP with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 55% weight, the Tokyo Stock Price index with a 23% weight and the FTSE 100 index with a 22% weight. Their underlying currencies are the euro, the Japanese yen and the British pound sterling, respectively.

The payout at maturity will be par plus the basket return, up to a maximum return of 18.9%.

If an index finishes above its initial level, its component return will be double its return, up to a maximum return of 18.9%.

If the index falls by 10% or less, its component return will be zero.

Otherwise, its component return will be 1.11111 times the sum of its return plus 10%.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC and JPMorgan Chase Bank NA as dealers.

The notes will price on Aug. 24 and settle on Aug. 29.

The Cusip number is 4042K13K7.

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