HSBC plans contingent income barrier notes linked to Gold Miners fund

By Susanna Moon

Chicago, Jan. 8 – HSBC USA Inc. plans to price contingent income barrier notes due April 25, 2016 linked to the Market Vectors Gold Miners ETF, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 9% to 12% if the index closes above the barrier level, 65% of the initial level, on the determination date for that quarter. The exact contingent coupon rate will be set at pricing.

If the index finishes at or above the 65% trigger level, the payout at maturity will be par.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 20 and settle on Jan. 23.

The Cusip number is 40433BYB8.

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