HSBC plans contingent income autocallable notes tied to Bristol-Myers

By Susanna Moon

Chicago, Aug. 21 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 31, 2018 linked to Bristol-Myers Squibb Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8% if the stock closes at or above the 80% coupon 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 level on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the stock finishes below the 80% trigger level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will price on Aug. 28 and settle on Sept. 2.

The Cusip number is 40434E457.

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