HSBC plans to price Stars due 2016 linked to S&P 500, Euro Stoxx 50

By Susanna Moon

Chicago, Feb. 20 – HSBC USA Inc. plans to price 0% Strategic Accelerated Redemption Securities due March 2016 linked to a basket of two equally weighted indexes, according to an FWP with the Securities and Exchange Commission.

The underlying indexes are the S&P 500 index and the Euro Stoxx 50 index.

BofA Merrill Lynch is the agent.

The notes will be called at par of $10 plus a call premium of 6% to 10% annualized if the basket closes at or above the initial level on any of three quarterly observation dates.

The payout at maturity will be par unless the basket falls by more than 5%, in which case investors will be exposed to any losses beyond 5%.

The exact deal terms will be set at pricing.

The notes will price in February and settle in March.

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