HSBC plans capped barrier notes tied to basket of three sector ETFs

By Marisa Wong

Morgantown, W.Va., Feb. 18 – HSBC USA Inc. plans to price 0% capped barrier notes due March 8, 2017 linked to an equally weighted basket of three exchange-traded funds, according an FWP with the Securities and Exchange Commission.

The basket includes the Technology Select Sector SPDR fund, the Health Care Select Sector SPDR fund and the Consumer Discretionary Select Sector SPDR fund.

If the basket falls by more than 19.5%, the payout at maturity will be par plus the basket return, with full exposure to losses.

Otherwise, the payout will be par plus the basket return, subject to a contingent minimum return of zero and a cap of 15%.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 19 and settle on Feb. 24.

The Cusip number is 40433UJQ0.

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