HSBC plans contingent income autocallables tied to United Continental

By Susanna Moon

Chicago, July 22 – HSBC USA Inc. plans to price contingent income autocallable securities due July 31, 2015 linked to United Continental Holdings, 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 12.65% if United Continental stock closes at or above the 65% barrier 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 barrier 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. will be the agent.

The notes will price on July 28 and settle on July 31.

The Cusip number is 40434C113.

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