HSBC plans autocallable notes tied to S&P 500, iShares MSCI EAFE

By Marisa Wong

Madison, Wis., Aug. 3 - HSBC USA Inc. plans to price 0% autocallable notes due Aug. 31, 2015 linked to the S&P 500 index and the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called automatically at par plus an annualized premium of 9% to 12% if the underlying components close above their initial levels on any of three annual call observation dates. The third call observation date is also the final valuation date. The exact call premium will be set at pricing.

If the notes are not called and the underlying components finish at or above 90% of their initial levels, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline beyond the 10% buffer.

The notes (Cusip: 4042K13D3) will price on Aug. 28 and settle on Aug. 31.

HSBC Securities (USA) Inc. is the agent.

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