HSBC plans trigger return optimization securities tied to fund basket

By Toni Weeks

San Luis Obispo, Calif., June 6 - HSBC USA Inc. plans to price 0% trigger return optimization securities due June 30, 2016 linked to a basket of funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.

The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of 35% to 40%.

If the basket finishes at or above the 75% trigger level, the payout will be par.

Otherwise, investors will be fully exposed to the basket decline.

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

The notes (Cusip: 40433X621) will price June 25 and settle June 28.

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