HSBC plans lookback allocator notes linked to three European indexes

By Angela McDaniels

Tacoma, Wash., April 17 – HSBC USA Inc. plans to price 0% lookback allocator notes linked to three indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The indexes are the Deutsche Borse AG German Stock Price index, which is a capitalization-weighted index of 30 German stocks traded on the FWB; the CAC 40 index, which is weighted by free-float market capitalization and turnover of shares and is designed to reflect the general trends in the trading of shares listed on Euronext Paris SA, and the IBEX 35 index, which is a price return index composed of the 35 most liquid securities listed on the Stock Exchange Interconnection System of the four Spanish Stock Exchanges.

The tenor is expected to be three and a half to four years and will be set at pricing.

The payout at maturity will be par plus 60% of the return of the best-performing index, 30% of the return of the second best-performing index and 10% of the return of the worst-performing index. The notes are not principal protected, so the payout could be less than par.

HSBC Securities (USA) Inc. is the agent.

The notes will price in April and settle in May.

The Cusip number is 40433BU97.

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