HSBC to sell barrier multi-coupon notes linked to Russell 2000 index

By Susanna Moon

Chicago, Feb. 12 - HSBC USA Inc. plans to price 0% barrier multi-coupon securities due Feb. 25, 2013 based on the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be any gain in the index, up to a trigger point. If the index rises above its trigger level during the year preceding the coupon valuation date, the coupon will be 0.75% to 1%, with the exact rate to be set at pricing. Interest will be payable annually.

The trigger level will be 115% of the initial index level until Feb. 22, 2011, 120% from Feb. 22, 2011 to Feb. 22, 2012 and 130% from Feb. 22, 2012 onward.

The payout at maturity will be par.

The notes are expected to price on Feb. 22 and settle on Feb. 25.

HSBC Securities (USA) Inc. is the agent.

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