HSBC plans contingent income autocallable notes on Gold Miners ETF

By Marisa Wong

Madison, Wis., May 9 - HSBC USA Inc. plans to price contingent income autocallable securities due May 21, 2015 linked to the Market Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of 2.9375% if the fund closes at or above the 80% downside threshold level on a quarterly determination date.

The notes will be redeemed at par of $10 plus the contingent payment if the fund closes at or above the initial level on any of the first three quarterly determination dates.

If the notes are not called and the final fund share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will be fully exposed to losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on May 16 and settle on May 21.

The Cusip number is 40434C550.

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