HSBC plans to price multi-coupon securities linked to six ETFs

By Angela McDaniels

Tacoma, Wash., Nov. 3 - HSBC USA Inc. plans to price multi-coupon securities due November 2015 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the iShares MSCI Emerging Markets index fund, Market Vectors Gold Miners ETF, Semiconductor Holdrs trust, Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Health Care SPDR fund.

The notes will pay a coupon in November of each year. If any of the basket funds closes below its trigger price - 80% of its initial share price - on the coupon valuation date, the coupon for that year will be 1%. Otherwise, the coupon will equal the contingent coupon rate, which is expected to be 5% to 6% and will be set at pricing.

The payout at maturity will be par.

The notes will price and settle in November.

HSBC Securities (USA) Inc. is the agent.

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