HSBC plans six-month contingent income autocallables tied to Netflix

By Susanna Moon

Chicago, Nov. 18 – HSBC USA Inc. plans to price contingent income autocallable securities due May 31, 2017 linked to Netflix Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent monthly coupon at an annual rate of 15.2% if Netflix shares close at or above their downside threshold, 75% 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 75% 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. 25 and settle on Nov. 30.

The Cusip number is 40435B254.

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