HSBC to price trigger phoenix autocallables linked to UnitedHealth

By Jennifer Chiou

New York, Sept. 30 - HSBC USA Inc. plans to price trigger phoenix autocallable optimization securities due Oct. 12, 2012 linked to the common stock of UnitedHealth Group Inc., according to an FWP with the Securities and Exchange Commission.

If UnitedHealth stock closes at or above the trigger price - 70% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 12.75% to 16.25% per year. Otherwise, no coupon will be paid that quarter.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and UnitedHealth shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 40433C379) will price on Oct. 7 and settle on Oct. 13.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.

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