HSBC plans contingent income autocallables linked to Western Digital

By Susanna Moon

Chicago, June 9 – HSBC USA Inc. plans to price contingent income autocallable securities due June 18, 2015 linked to Western Digital Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment an annual rate of at least 9.85% if Western Digital stock closes at or above the 75% barrier level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment 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 final share price is greater than or equal to the 75% barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Western Digital 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.

The notes will price on June 13 and settle on June 18.

The Cusip number is 40434C436.

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