HSBC plans contingent income autocallable notes tied to Dow Chemical

By Marisa Wong

Morgantown, W.Va., Aug. 13 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 29, 2016 linked to Dow Chemical Co. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 2.8125% if the shares close 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 level on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% downside threshold level, in which case investors will receive a number of Dow shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Aug. 21 and settle on Aug. 26.

The Cusip number is 40434E515.

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