HSBC plans contingent income autocallables linked to Anadarko

By Angela McDaniels

Tacoma, Wash., Dec. 5 – HSBC USA Inc. plans to price contingent income autocallable securities due June 14, 2017 linked to the common stock of Anadarko Petroleum Corp., according to an FWP filing with the Securities and Exchange Commission.

If Anadarko shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of at least 13%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Anadarko shares close at or above the initial share price on any monthly determination date other than the final determination date.

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 lose 1% for every 1% that the final share price is less than the initial share price.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price Dec. 9.

The Cusip number is 40435B148.

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