HSBC plans airbag return optimization notes on S&P 500, Euro Stoxx 50

By Marisa Wong

Madison, Wis., Dec. 5 - HSBC USA Inc. plans to price 0% airbag return optimization securities due Dec. 31, 2019 linked to an equally weighted basket consisting of the S&P 500 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

If the basket return is positive, the payout at maturity will be par plus 150% of the return, subject to a maximum return of 70% to 80% that will be set at pricing.

If the basket return is zero or negative but greater than or equal to negative 40%, the payout will be par. Investors will share in losses at a rate of 1.67% per 1% decline beyond 40%.

The notes (Cusip: 40434B644) are expected to price on Dec. 27 and settle on Dec. 31.

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

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