HSBC to price annual income opportunity securities linked to nine ADSs

By Marisa Wong

Madison, Wis., Aug. 4 - HSBC USA Inc. plans to price annual income opportunity securities with auto cap due August 2016 linked to a basket of American Depositary Shares, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the ADSs of Canon Inc., China Unicom (Hong Kong) Ltd., Chunghwa Telecom Co., Ltd., CNOOC Ltd., Icici Bank Ltd., LG Display Co., Ltd., Nippon Telegraph and Telephone Corp., SK Telecom Co., Ltd. and Tata Motors Ltd.

Interest is payable annually and will equal the average of the performances of the basket ADSs, subject to a floor of zero.

If a basket component's return is zero or positive, its performance will be fixed at 8.75%. If a basket component's return is negative, its performance will be the ADS return.

The payout at maturity will be par.

The notes (Cusip: 4042K04V4) will price and settle in August.

HSBC Securities (USA) Inc. is the agent.

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