HSBC plans to price buffered AMPS linked to basket of indexes, fund

By Toni Weeks

San Diego, Feb. 7 - HSBC USA Inc. plans to price 0% buffered Accelerated Market Participation Securities due May 17, 2013 linked to a basket of two indexes and one index fund, unequally weighted, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the S&P 500 index with a 50% weight, the Russell 2000 index with a 35% weight and the iShares MSCI Emerging Markets index fund with a 15% weight.

The payout at maturity will be par plus 200% of any gain in the basket, subject to a maximum return of at least 15% that will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will be exposed to declines beyond 10%.

The securities (Cusip: 4042K1XL2) are expected to price Feb. 13 and settle Feb. 16.

HSBC Securities (USA) Inc. is the agent.

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