HSBC plans bearish autocallable notes linked to Energy Select Sector SPDR via UBS

By Jennifer Chiou

New York, May 30 - HSBC USA Inc. plans to price 0% bearish autocallable optimization securities with contingent protection due Dec. 31, 2009 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC USA Inc. will be the underwriters.

The notes will be automatically called if the closing level of the index is at or below its starting level on any observation date.

The call price will be equal to par plus a fixed annual return to the relevant observation date. The annual return will be set at pricing and is expected to be 18.6% to 22.6%.

The observation dates are Sept. 25, 3008, Dec. 29, 2008, March 25, 2009, June 25, 2009, Sept. 25, 2009 and Dec. 28, 2009.

At maturity, investors will receive par if the index stays below the trigger level - 140% of the index's starting level - during the life of the notes. If the index has ever closed above the trigger level, the payout will be par times the index performance.

The notes are expected to price on June 25 and settle on June 30.

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