HSBC plans Accelerated Return Notes linked to three financial stocks

By Angela McDaniels

Tacoma, Wash., April 16 - HSBC USA Inc. plans to price 0% Accelerated Return Notes due June 2015 linked to a basket of three financial sector stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Citigroup Inc. with a 33.33% weight, JPMorgan Chase & Co. with a 33.33% weight and Wells Fargo & Co. with a 33.34% weight.

The payout at maturity will be par of $10 plus triple any gain in the basket, subject to a maximum return that is expected to be 15% to 19% and will be set at pricing. Investors will be fully exposed to any decline in the basket.

BofA Merrill Lynch is the agent.

The notes will price in April and settle in May.

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