HSBC to price autocallable notes due 2014 linked to Brazilian real

By Jennifer Chiou

New York, June 27 - HSBC USA Inc. plans to price 0% autocallable notes due Jan. 9, 2014 linked to the Brazilian real relative to the dollar, according to an FWP with the Securities and Exchange Commission.

The notes will be automatically called if the spot rate has risen from the initial rate on any of the semiannual observation dates beginning on Jan. 2, 2013. The call premium will be 10.25% if called on the first observation date, 20.5% if called on July 1, 2013 and 30.75% if called on Jan. 2, 2014, the final valuation date.

If the notes are not called, the payout at maturity will be par if the spot rate falls by up to 15%. Investors will share in any losses beyond 15%.

The notes (Cusip: 4042K1V26) will price on June 29 and settle on July 9.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the distributor.

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