HSBC plans one-year contingent income autocallables tied to Walgreens

By Susanna Moon

Chicago, Nov. 9 – HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 16, 2017 linked to Walgreens Boots Alliance, Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% if Walgreens shares close at or above their downside threshold, 80% of their initial level, on the determination date for that quarter.

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

The payout at maturity will be par plus the final contingent coupon, unless Walgreens shares finish below the 80% downside threshold, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent, and Morgan Stanley Wealth Management is a distributor.

The notes will price on Nov. 11 and settle on Nov. 16.

The Cusip number is 40435B312.

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