HSBC plans one-year bear Stars linked to Russell 2000 via Merrill

By Susanna Moon

Chicago, Dec. 18 – HSBC USA Inc. plans to price 0% bear Strategic Accelerated Redemption Securities due January 2019 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

BofA Merrill Lynch will be the agent.

The notes will be called at par of $10 plus an annualized call premium of 6% to 6.5% if the index closes at or below its initial level on the observation date. The exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par unless the index gains, in which case investors will lose 1% for each 1% gain in the index.

The notes are expected to price and settle in December.

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