HSBC plans 6%-8% autocallable yield notes tied to S&P 500, Russell

By Toni Weeks

San Diego, Oct. 12 - HSBC USA Inc. plans to price 6% to 8% autocallable yield notes due Oct. 31, 2013 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The exact interest rate will be set at pricing. Interest will be payable quarterly.

The notes will be called automatically at par if each index closes at or above its initial level on Jan. 28, 2013, April 25, 2013, July 26, 2013 or Oct. 28, 2013.

A trigger event will occur if the closing level of either index declines by more than 25% during the life of the notes.

The payout at maturity will be par unless either index finishes below its initial level and a trigger event has occurred, in which case investors will lose 1% for every 1% that the worse-performing index declines below its initial level.

The notes are expected to price Oct. 26 and settle Oct. 31.

HSBC Securities (USA) Inc. is the agent.

The Cusip number is 4042K15H2.

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