HSBC plans to price contingent income autocallables tied to Microsoft

By Devika Patel

Knoxville, Tenn., Jan. 13 – HSBC USA Inc. will price contingent income autocallable securities due Jan. 24, 2020 linked to the common stock of Microsoft Corp., according to an FWP filing with the Securities and Exchange.

Beginning on April 20, 2017, if Microsoft shares close at or above 80% of the initial price on any quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 9%.

The notes will be called at par of $10 plus the contingent coupon if Microsoft shares close at or above the initial share price on any of the first 11 quarterly determination dates.

If the final share price is greater than or equal to the downside threshold level, 80% of the initial price, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for each 1% decline of the share price.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435C625) will price on Jan. 20 and settle three business days after pricing.

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