HSBC to price performance securities linked to six indexes

By Angela McDaniels

Tacoma, Wash., Dec. 6 - HSBC USA Inc. plans to price 0% performance securities with contingent protection due Dec. 31, 2012 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the Dow Jones Euro Stoxx 50 index with a 35% weight, the FTSE 100 index with a 25% weight, the Nikkei 225 index with a 25% weight, the Swiss Market index with a 5% weight, the S&P/ASX 200 index with a 5% weight and the MSCI Emerging Markets index with a 5% weight.

If final basket level is greater than the initial basket level, the payout at maturity will be par of $10 plus the basket return multiplied by a participation rate that will be between 115% and 130%. The exact participation rate will be set at pricing.

If final basket level is less than the initial level, the payout will be:

• Par minus the index decline if the basket closes below the trigger level - 50% of the initial level - at any point during the life of the securities; or

• Par if the basket never closes below the trigger level.

The securities will price on Dec. 21 and settle on Dec. 31.

UBS Financial Services, Inc. will be the underwriter.

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