HSBC plans optimization notes with contingent return tied to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 31 - HBSC USA Inc. plans to price 0% optimization securities with contingent return due March 30, 2012 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is at least 80% of the initial level, the payout at maturity will be par of $10 plus the greater of 9% and the index return, subject to a maximum return of 20% to 25% that will be set at pricing.

If the final index level is less than 80% of the initial level, investors will be fully exposed to the decline.

The notes (Cusip: 40432R633) are expected to price Sept. 27 and settle Sept. 30.

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

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