HSBC plans market plus notes linked to three Select Sector SPDR funds

By Angela McDaniels

Tacoma, Wash., June 4 - HSBC USA Inc. plans to price 0% market plus notes due Dec. 11, 2015 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket consists of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund.

A knock-out event occurs if the basket declines by more than 16% during the life of the notes.

If a knock-out event has occurred, the payout at maturity will be par plus the basket return. If a knock-out event has not occurred, the payout will be par plus the greater of the basket return and zero.

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

The notes are expected to price June 6 and settle June 11.

The Cusip number is 40433BEF1.

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