HSBC plans trigger digital optimization notes tied to BRIC currencies

By Toni Weeks

San Diego, Nov. 21 - HSBC USA Inc. plans to price 0% trigger digital optimization securities due Dec. 16, 2013 linked to a basket of currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes the Brazilian real, Russian ruble, Indian rupee and Chinese renminbi.

If the basket return is zero or positive, the payout at maturity will be par of $10 plus a digital return of 30% to 35% that will be determined at pricing.

If the basket level declines by 20% or less, the payout will be par.

If the basket level declines by more than 20%, the payout will be par plus the basket return.

The notes (Cusip: 40433C114) are expected to price Dec. 9 and settle Dec. 14.

HSBC Securities (USA) Inc. will act as the underwriter with UBS Financial Services Inc. as the agent.

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