HSBC plans one-year contingent income autocallables linked to Delta

By Susanna Moon

Chicago, Dec. 19 – HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 31, 2015 linked to Delta Air Lines, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at the rate of at least 15.35% per year if the stock closes at or above its 75% barrier level on the observation 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 price, on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the stock finishes below its barrier level, in which case investors will be receive a number of shares of Delta stock equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 26 and settle on Dec. 31.

The Cusip number is 40434F694.

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