HSBC plans six-month autocallable trigger notes linked to palladium

By Toni Weeks

San Diego, Feb. 15 - HSBC USA Inc. plans to price 0% autocallable trigger notes due Aug. 27, 2012 linked to palladium, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of at least 7% if the price of palladium closes at or above the initial price on any trading day beginning May 17. The exact call premium will be determined at pricing.

If the notes are not called, the payout at maturity will be par if the palladium price finishes at or above 80% of the initial price.

Otherwise, investors will be exposed to any losses from the initial price.

The notes (Cusip: 4042K1XN8) are expected to price Feb. 17 and settle Feb. 27.

HSBC Securities (USA) Inc. will be the underwriter with J.P. Morgan Securities LLC as placement agent.

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