HSBC to price trigger phoenix autocallables linked to SPDR S&P 500

By Angela McDaniels

Tacoma, Wash., Dec. 13 - HSBC USA Inc. plans to price trigger phoenix autocallable optimization securities due Dec. 22, 2014 linked to the SPDR S&P 500 ETF Trust, according to an FWP filing with the Securities and Exchange Commission.

If the trust's shares close at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter. Otherwise, no coupon will be paid that quarter. The contingent coupon is expected to be 6% to 8.2% per year will be set at pricing.

Beginning Dec. 17, 2012, if the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the trust's shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 40433K827) are expected to price Dec. 16 and settle Dec. 21.

HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.