HSBC plans contingent income autocallables linked to Wynn Resorts

By Tali Rackner

Norfolk, Va., June 20 – HSBC USA Inc. plans to price contingent income autocallable securities due June 29, 2017 linked to the common stock of Wynn Resorts, Ltd., according to an FWP filing with the Securities and Exchange Commission.

If Wynn shares close at or above the downside threshold level, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 13.15%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Wynn shares close at or above the initial share price on any of the first three determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the losses.

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

The notes will price on June 24 and settle on June 29.

The Cusip number is 40434V590.

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