HSBC plans contingent buffered notes linked to oil & gas ETF

By Marisa Wong

Morgantown, W.Va., Oct. 19 – HSBC USA Inc. plans to price 0% contingent buffered notes due Nov. 8, 2017 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the final price is less than the initial price by more than 65%.

If a knock-out event has not occurred, the payout at maturity will be par plus a digital return of 10%. Otherwise, the payout will be par plus the fund return with full exposure to losses.

HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.

The notes will price Oct. 21.

The Cusip number is 40433UXZ4.

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