HSBC plans buffered return optimization notes on oil and gas stocks

By Toni Weeks

San Diego, Nov. 29 - HSBC USA Inc. plans to price 0% buffered return optimization securities due Dec. 22, 2014 linked to a basket of shale oil and gas stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the stocks of Consol Energy Inc., Devon Energy Corp., Encana Corp., Newfield Exploration Co., Range Resources Corp. and Southwestern Energy Co.

The payout at maturity will be par plus triple any gain in the basket, up to a maximum gain of 38% to 43%. The exact maximum return will be set at pricing.

Investors will receive par if the basket falls by up to 20% and will lose 1% for every 1% decline in the basket beyond 20%.

The notes (Cusip: 40433K876) will price Dec. 16 and settle Dec. 21.

HSBC Securities (USA) Inc. will be the underwriter, and UBS Financial Services Inc. will be the agent.

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