HSBC plans one-year contingent income autocallables linked to Coach

By Marisa Wong

Madison, Wis., Feb. 24 - HSBC USA Inc. plans to price contingent income autocallable securities due March 5, 2015 linked to Coach, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 10.5% if Coach stock closes at or above the 80% downside threshold level on the determination date for that quarter. The exact contingent quarterly coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the last coupon. If the stock finishes below the downside threshold level, investors will receive a number of shares equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 28 and settle on March 5.

The Cusip number is 40434B164.

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