HSBC to price contingent income autocallables linked to Alexion

By Marisa Wong

Madison, Wis., July 7 – HSBC USA Inc. plans to price contingent income autocallable securities due July 16, 2015 linked to Alexion Pharmaceuticals, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at a rate of at least 10.5% per year if Alexion stock closes at or above the 70% downside threshold level on the determination date for that quarter. The exact coupon will be set at pricing.

If the shares close 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 coupon.

If the notes are not called and Alexion stock finishes at or above the 70% downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Alexion stock 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 with Morgan Stanley Wealth Management handling distribution.

The notes will price on July 11 and settle on July 16.

The Cusip number is 40434C196.

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