HSBC plans to price 18-month gold participation securities

By Toni Weeks

San Diego, March 1 - HSBC USA Inc. plans to price 0% participation securities due September 2013 linked to the spot price of gold, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any gain in the price of gold, subject to a maximum return of 18% to 22% that will be set at pricing.

Investors will receive par if the price of gold falls by up to 10% and will be exposed to losses from the initial level if it falls by more than 10%.

The notes (Cusip: 4042K1YP2) are expected to price and settle in March.

HSBC Securities (USA) Inc. will act as agent.

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