HSBC plans contingent income barrier autocallables linked to Qualcomm

By Angela McDaniels

Tacoma, Wash., March 6 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due June 13, 2018 linked to the common stock of Qualcomm, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if Qualcomm stock closes at or above the trigger level, 70% of the initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be 7.25% to 8% per year and will be set at pricing.

Beginning Sept. 8, 2017, the notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any coupon observation date.

The payout at maturity will be par plus the final coupon unless the stock closes below its trigger level on any day during the life of the notes, in which case the payout will be a number of Qualcomm shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

The notes will price March 8.

The Cusip number is 40435H699.

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