HSBC plans 14-month Accelerated Return Notes tied to energy stocks

By Jennifer Chiou

New York, Feb. 13 – HSBC USA Inc. plans to price 0% Accelerated Return Notes due April 2016 linked to equal weights of three energy sector stocks, according to an FWP with the Securities and Exchange Commission.

The underlying companies are Exxon Mobil Corp., Occidental Petroleum Corp. and Hess Corp.

The payout at maturity will be par of $10 plus triple any basket gain, up to a maximum return of 15% to 19%. The exact cap will be set at pricing.

Investors will be exposed to any losses.

The notes are expected to price in February and settle in March.

BofA Merrill Lynch is the agent.

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