HSBC plans barrier notes with step-up digital return on Mexican peso

By Toni Weeks

San Diego, Nov. 19 - HSBC USA Inc. plans to price 0% barrier notes with step-up digital return due Dec. 6, 2013 linked to the Mexican peso relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

If the currency return is more than 5%, the payout at maturity will be $1,225 for each $1,000 principal amount of notes.

If the currency return is positive but less than or equal to 5%, the payout will be $1,050 per $1,000 of notes.

If the currency return is zero or if it is negative but finishes at or above the 85% barrier level, the payout will be par.

Otherwise, investors will be fully exposed to all losses.

HSBC Securities (USA) Inc. will be the underwriter with J.P. Morgan Securities LLC as dealer.

The notes will price on Nov. 21 and settle on Nov. 29.

The Cusip number is 40432X3R0.

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