HSBC plans three-year buffered AMPS linked to basket of indexes, fund

By Susanna Moon

Chicago, Nov. 1 - HSBC USA Inc. plans to price 0% buffered Accelerated Market Participation Securities due Nov. 25, 2014 linked to a basket of two indexes and an index fund, equally weighted, according to an FWP filing with the Securities and Exchange Commission.

The underlying components are the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE index fund.

The payout at maturity will be par plus 1.5 times any gain in the basket, up to a cap of 37% to 41%. The exact cap will be set at pricing.

Investors will receive par if the basket declines by up to 20% and will lose 1% for every 1% that it declines beyond 20%.

HSBC Securities (USA) Inc. will be the agent.

The notes will price on Nov. 18 and settle on Nov. 28.

The Cusip number is 4042K1SE4.

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