HSBC plans contingent income autocallables tied to Freeport-McMoRan

By Toni Weeks

San Luis Obispo, Calif., July 21 – HSBC USA Inc. plans to price contingent income autocallable securities due July 30, 2015 linked to Freeport-McMoRan Copper & Gold 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 8.95% if Freeport-McMoRan stock closes at or above the 80% downside threshold level on the determination date for that quarter.

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.

The notes (Cusip: 40434C147) are expected to price July 25 and settle July 30.

HSBC Securities (USA) Inc. will be the agent.

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