HSBC plans three-year contingent income autocallables linked to CBS

By Susanna Moon

Chicago, Sept. 16 - HSBC USA Inc. plans to price contingent income autocallable securities due Sept. 26, 2016 linked to CBS Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

If CBS stock closes at or above the 75% barrier level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of at least 9.4% for that quarter. The exact contingent quarterly payment will be set at pricing.

If the shares close at or above the initial level on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 75% trigger level, in which case the payout will be a number of CBS shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as dealer.

The notes will price on Sept. 20 and settle on Sept. 25.

The Cusip number is 40433X217.

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