HSBC plans 9% one-year autocallable yield notes linked to Vertex

By Toni Weeks

San Luis Obispo, Calif., July 13 – HSBC USA Inc. plans to price autocallable yield notes due July 25, 2016 linked to the common stock of Vertex Pharmaceuticals Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly. The coupon is expected to be at least 9% and will be set at pricing.

Beginning Jan. 20, 2016, 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 Vertex shares equal to $1,000 divided by the initial stock price.

HSBC Securities (USA) Inc. is the agent.

The notes will price July 21 and settle July 24.

The Cusip number is 40433B4F2.

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