HSBC plans contingent income autocallables due 2017 tied to Netflix

By Susanna Moon

Chicago, June 28 – HSBC USA Inc. plans to price contingent income autocallable securities due Jan. 6, 2017 linked to Netflix, Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 17.9% if Netflix shares close at or above their downside threshold, 70% of their initial level, on the determination date for that month.

The notes will be called at par of $10 plus the contingent coupon if Netflix shares close above the initial level on any of the first five determination dates.

The payout at maturity will be par plus the final contingent coupon, unless Netflix shares finish below the 70% downside threshold, in which case investors will be fully exposed to any losses.

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

The notes will price on July 1 and settle on July 7.

The Cusip number is 40434K123.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.