HSBC plans auto cap annual income opportunity securities on 12 stocks

By Marisa Wong

Madison, Wis., July 23 - HSBC USA Inc. plans to price annual income opportunity securities with auto cap due July 30, 2015 linked to a basket of 12 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the common shares of Archer-Daniels-Midland Co., Amazon.com, Inc., Bank of America Corp., Berkshire Hathaway Inc., Exelon Corp., First Solar, Inc., Gilead Sciences Inc., Applied Materials Inc., Newmont Mining Corp., Pfizer Inc., Verizon Communications Inc. and Waste Management, Inc.

Interest is payable annually and will equal the average of the returns on the basket stocks, subject to a floor of 0.5% and a cap equal to the auto cap rate. Each stock will have an auto cap rate of 6.5% and a floor of negative 20%.

The payout at maturity will be par.

The securities (Cusip: 4042K03B9) will price on July 27 and settle on July 30.

HSBC Securities (USA) Inc. is the agent.

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