HSBC plans performance notes with barrier, no cap tied to index basket

By Susanna Moon

Chicago, Sept. 20 - HSBC USA Inc. plans to price 0% performance barrier notes due September 2016 linked to a basket of equally weighted indexes, according to an FWP filing with the Securities and Exchange Commission.

The underlying components are Hang Seng China Enterprises index, the Korea Composite Stock Price Index 200, the MSCI Taiwan index, the Hang Seng index and the MSCI Singapore Free index.

The payout at maturity will be par plus 1.5 times to 1.6 times any gain in the basket.

Investors will receive par if the index falls by up to 30% and will be fully exposed to any losses if the index finishes below the 70% barrier level.

HSBC Securities (USA) Inc. is the agent.

The notes will price and settle in September.

The Cusip number is 4042K15C3.

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