HSBC plans contingent income autocallables linked to Gold Miners ETF

By Marisa Wong

Madison, Wis., Aug. 21 – HSBC USA Inc. plans to price contingent income autocallable securities due Sept. 4, 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 8% if the fund closes at or above the 80% downside threshold 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 downside threshold level, the payout at maturity will be par plus the final coupon.

If the fund finishes below the downside threshold level, investors will be fully exposed to the share price decline.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price Aug. 29 and settle Sept. 4.

The Cusip number is 40434D772.

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