HSBC plans digital return notes tied to dollar vs. euro

By Marisa Wong

Madison, Wis., Nov. 20 – HSBC USA Inc. plans to price 0% digital return notes due November 2015 linked to the dollar relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.

A trigger event occurs if the spot rate is less than the trigger level, 92% of the initial spot rate, at any time on any trading day during the life of the notes.

If a trigger event occurs, the payout will be par, regardless of the final spot rate.

If a trigger event does not occur and the final spot rate is less than or equal to the barrier level, 97% of the initial spot rate, the payout at maturity will be par plus the digital return, which will be at least 8% and will be set at pricing.

If a trigger event does not occur and the final spot rate is greater than the barrier level, the payout will be $950 per $1,000 principal amount.

HSBC Securities (USA) Inc. is the agent.

The notes will price and settle in November.

The Cusip number is 40433BTW8.

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