HSBC plans contingent income autocallables linked to Gold Miners fund

By Susanna Moon

Chicago, July 22 – HSBC USA Inc. plans to price contingent income autocallable securities due July 30, 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 coupon at an annual rate of at least 9.75% if the fund closes at or above the 80% barrier level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the fund closes at or above the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the fund finishes at or above the barrier level, the payout at maturity will be par plus the last coupon.

If the fund finishes below the downside threshold level, investors will receive a number of shares equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

HSBC Securities (USA) Inc. will be the agent.

The notes will price on July 25 and settle on July 30.

The Cusip number is 40434C121.

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