HSBC plans 6% autocallable yield notes linked to S&P 500, Russell 2000

By Angela McDaniels

Tacoma, Wash., Oct. 31 – HSBC USA Inc. plans to price autocallable yield notes due Feb. 25, 2016 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The interest rate is expected to be at least 6% per year and will be set at pricing. Interest will be payable monthly.

Beginning six months after issuance, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.

The payout at maturity will be par unless either index closes below its trigger level, 80% of its initial level, on any day during the life of the notes and the return of the worst-performing index is negative, in which case investors will lose 1% for every 1% that the worst-performing index finishes below its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price Nov. 20 and settle Nov. 25.

The Cusip number is 40433BSP4.

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