HSBC plans contingent income autocallable notes linked to Allergan

By Wendy Van Sickle

Columbus, Ohio, March 22 – HSBC USA Inc. plans to price contingent income autocallable securities due March 27, 2020 linked to Allergan plc ordinary shares, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 10.4% if the shares close at or above the 80% downside threshold on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the shares close at or above the initial level on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold, in which case investors will lose 1% for each 1% decline.

HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.

The notes will price on March 24.

The Cusip number is 40435H624.

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