HSBC plans trigger autocallables tied to iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., Oct. 2 - HSBC USA Inc. plans to price 0% trigger autocallable optimization securities due Oct. 12, 2017 linked to the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

Beginning Oct. 15, 2013, the notes will be called at par plus a call return of 7.25% to 9.25% per year if the exchange-traded fund's shares close at or above the initial share price on any quarterly observation date. The exact call return will be set at pricing.

If the notes are not called and the ETF's shares finish at or above the trigger price, 65% of the initial share price, the payout at maturity will be par. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes are expected to price Oct. 5 and settle Oct. 11.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as dealer.

The Cusip number is 40433T844.

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