HSBC to price leveraged participation notes linked to Asian currencies

By Angela McDaniels

Tacoma, Wash., Sept. 23 – HSBC USA Inc. plans to price 0% leveraged participation securities due Oct. 2, 2015 linked to the performance of a basket of currencies relative to the U.S. dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the deliverable Chinese renminbi, the Indian rupee, the Korean won and the Taiwanese dollar.

The issuer said the securities are designed for investors who believe that the basket currencies will appreciate in value against the U.S. dollar over their term.

If the basket return is greater than or equal to zero, the payout at maturity will be par plus at least 170% of the basket return. The exact upside participation rate will be set at pricing. If the basket return is less than zero, the payout will be 95% of par.

HSBC Securities (USA) Inc. is the underwriter.

The notes are expected to price Sept. 25 and settle Oct. 2.

The Cusip number is 40433BNQ7.

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