HSBC plans autocallable return enhanced notes linked to General Motors

By Angela McDaniels

Tacoma, Wash., Feb. 26 - HSBC USA Inc. plans to price 0% autocallable return enhanced notes due March 18, 2015 linked to the common stock of General Motors Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at 117% of par if GM stock closes at or above the trigger level, 108.5% of the initial share price, on June 12, 2014, Sept. 11, 2014 or Dec. 11, 2014.

If the final share price is greater than the initial share price, the payout at maturity will be par plus double the stock return, subject to a maximum return of 17%. Otherwise, investors will be fully exposed to the decline in the stock price.

The final share price will be the average of the stock's closing share prices on the five days ending March 13, 2015.

HSBC Securities (USA) Inc. is the underwriter. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are agents.

The notes are expected to price Feb. 28 and settle March 5.

The Cusip number is 40432XU82.

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