HSBC to price trigger phoenix autocallables tied to iShares MSCI EM

By Marisa Wong

Madison, Wis., Feb. 1 - HSBC USA Inc. plans to price 0% trigger phoenix autocallable optimization securities due Feb. 9, 2015 linked to the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund closes at or above the trigger price - 65% of the initial share price - on any quarterly observation date, the issuer will pay a contingent coupon of 7% to 8.6% per year. Otherwise, no coupon will be paid for that quarter. The exact contingent coupon will be set at pricing.

If the fund closes at or above the initial price on any 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 plus the contingent coupon. Otherwise, investors will be fully exposed to the fund share price decline.

The notes (Cusip: 40433K520) will price on Feb. 3 and settle on Feb. 8.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

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