HSBC plans one-year Stars tied to financials with 11%-15% call premium

By Susanna Moon

Chicago, June 17 – HSBC USA Inc. plans to price 0% Strategic Accelerated Redemption Securities due July 2016 linked to a basket of three equally weighted financial sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley.

The notes will be called at par of $10 plus an annualized call premium of 11% to 15% per year if the basket closes at or above its initial level on any quarterly review date.

The payout at maturity will be par unless the basket falls, in which case investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in June.

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