HSBC plans trigger phoenix autocallables tied to iShares Russell 2000

By Susanna Moon

Chicago, Oct. 18 - HSBC USA Inc. plans to price trigger phoenix autocallable optimization securities due Oct. 27, 2014 linked to the iShares Russell 2000 index fund, according to an FWP with the Securities and Exchange Commission.

If the fund closes at or above the trigger price - 55% of the initial share price - on a quarterly observation date, the notes will pay an annualized contingent coupon of 8% to 10.2% for that quarter. The exact rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par of $10 plus the contingent coupon.

Otherwise, investors will be exposed any losses.

HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.

The notes will price on Oct. 21 and settle on Oct. 26.

The Cusip is 40433C296.

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