HSBC to price trigger return optimization securities linked to S&P 500

By Toni Weeks

San Luis Obispo, Calif., April 25 - HSBC USA Inc. plans to price 0% trigger return optimization securities due April 29, 2016 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par of $10 plus 1.5 times the index return, subject to a maximum return of 31% to 36% that will be set at pricing.

If the index return is zero or negative and the final index level is greater than or equal to the trigger level, 75% of the initial level, the payout will be par.

If the final index level is less than the trigger level, investors will be fully exposed to the index's decline from its initial level.

The notes (Cusip: 40433X837) are expected to price April 26 and settle April 30.

HSBC Securities (USA) Inc. will be the underwriter, and UBS Financial Services Inc. will act as agent.

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