HSBC to price autocallable contingent income notes linked to Lowe's

By Susanna Moon

Chicago, Aug. 16 - HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 22, 2013 linked to Lowe's Cos., Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If the stock closes at or above the 75% downside threshold level on a quarterly determination date, investors will receive a contingent quarterly payment of 2.375% to 2.625% for that period. The exact rate will be set at pricing.

If the stock closes at or above the initial price on any of the first three quarterly determination dates, the notes will be called at par plus the contingent payment.

If the notes are not called and the shares finish at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Lowe's stock equal to $10.00 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Smith Barney LLC handling distribution.

The notes will price on Aug. 17 and settle on Aug. 22.

The Cusip number is 40433M245.

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