HSBC plans 11% one-year autocallable yield notes linked to U.S. Steel

By Toni Weeks

San Luis Obispo, Calif., June 5 – HSBC USA Inc. plans to price autocallable yield notes due June 13, 2016 linked to the common stock of United States Steel Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly. The coupon is expected to be at least 11% and will be set at pricing.

Beginning Dec. 9, 2015, the notes will be automatically called at par plus the coupon if the stock price closes at or above the initial price on any quarterly call observation date.

A trigger event occurs if the stock price falls below the trigger price, 60% of the initial price, on any day during the life of the notes.

The payout at maturity will be par unless a trigger event occurs and the stock finishes below its initial price, in which case investors will receive a number of U.S. Steel shares equal to $1,000 divided by the initial stock price.

HSBC Securities (USA) Inc. is the agent.

The notes will price June 9 and settle June 12.

The Cusip number is 40433B2H0.

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