HSBC plans contingent income autocallables linked to Apple

By Marisa Wong

Madison, Wis., Aug. 28 - HSBC USA Inc. plans to price contingent income autocallable securities due Sept. 6, 2016 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

If Apple stock closes at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of at least 2.75% for that quarter. The amount is equivalent to 11% per year. The exact contingent coupon will be set at pricing.

If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of Apple shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 30 and settle on Sept. 5.

The Cusip number is 40433X282.

© 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.