HSBC plans contingent income barrier autocallables on three stocks

By Susanna Moon

Chicago, Sept. 15 – HSBC USA Inc. plans to price contingent income autocallable barrier notes due Sept. 25, 2017 linked to the least performing of Bank of America Corp., Walt Disney Co. and Netflix, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 18.5% if each stock closes at or above the 70% coupon trigger level on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above the initial price on any determination date beginning Dec. 21, 2016.

The payout at maturity will be par plus the final coupon unless any stock finishes below the 70% barrier level, in which case investors will be fully exposed to any losses of the worst performing stock.

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

The notes will price on Sept. 16 and settle on Sept. 23.

The Cusip number is 40433UVP8.

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