HSBC to price 8% callable yield notes linked to fund, two indexes

By Toni Weeks

San Diego, April 12 - HSBC USA Inc. plans to price callable yield notes due Oct. 23, 2014 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is expected to be at least 8% and will be set at pricing. Interest is payable quarterly.

The notes are callable at par on any interest payment date.

The payout at maturity will be par unless any component falls below its trigger level - 55% of its initial level - on the Oct. 20, 2014 final valuation date, in which case investors will receive par plus the return of the worst-performing component.

The notes (Cusip: 4042K1G56) are expected to price April 20 and settle April 25.

HSBC Securities (USA) Inc. is the agent.

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