HSBC plans trigger autocallables tied to iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., Jan. 3 - HSBC USA Inc. plans to price 0% trigger autocallable optimization securities due Jan. 12, 2017 linked to the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus a call return if the exchange-traded fund's shares close at or above the initial share price on any quarterly observation date. The first observation date is Jan. 11, 2013. The call return is expected to be 9.5% to 12% per year and will be set at pricing.

The payout at maturity will be par if the final share price is at least 50% of the initial share price. If the final share price is less than 50% of the initial share price, investors will be fully exposed to the decline.

The notes (Cusip: 40433K637) are expected to price Jan. 6 and settle Jan. 11.

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

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