HSBC to price annual income opportunity securities linked to 12 stocks

By Angela McDaniels

Tacoma, Wash., Nov. 15 - HSBC USA Inc. plans to price annual income opportunity securities with auto cap due November 2015 linked to a basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the common stocks of Alcoa, Inc., Altria Group, Inc., CenturyLink, Inc., Consolidated Edison Inc., Gilead Sciences Inc., General Mills, Inc., Intel Corp., Mosaic Co., Pfizer Inc., Schlumberger Ltd., U.S. Bancorp and YUM! Brands, Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of 0.5%.

If a basket stock's return is zero or positive, its performance will be fixed at 6%. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The notes (Cusip 4042K1AL7) will price and settle in November.

HSBC Securities (USA) Inc. is the agent.

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