HSBC plans barrier notes with step-up digital return linked to real

By Angela McDaniels

Tacoma, Wash., April 22 - HSBC USA Inc. plans to price 0% barrier notes with step-up digital return due May 8, 2014 linked to the performance of the Brazilian real relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The reference currency return will be positive if the real appreciates relative to the dollar.

If the reference currency return is greater than 3%, the payout at maturity will be $1,275 per $1,000 principal amount of notes.

If the reference currency return is greater than zero but less than or equal to 3%, the payout will be $1,050 per $1,000 principal amount of notes.

If the reference currency return is less than or equal to zero but greater than or equal to negative 15%, the payout will be par.

If the reference currency return is less than negative 15%, investors will lose 1% for each 1% that the reference currency return is below zero.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as dealers.

The notes will price April 24 and settle May 1.

The Cusip number is 40432XEE7.

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