HSBC plans to price contingent income autocallables tied to Delta Air

By Devika Patel

Knoxville, Tenn., Jan. 13 – HSBC USA Inc. will price contingent income autocallable securities due Jan. 25, 2018 linked to the common stock of Delta Air Lines, Inc., according to an FWP filing with the Securities and Exchange.

If Delta shares close at or above the downside threshold level, 70% of the initial level, on any quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 10.2%.

The notes will be called at par of $10 plus the contingent coupon if Delta shares close at or above the initial share price on April 20, 2017, July 20, 2017 or Oct. 20, 2017.

If the final share price is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for each 1% decline of the stock.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435C591) will price on Jan. 20 and settle three business days after pricing.

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