HSBC plans contingent income autocallables linked to Marathon Oil

By Susanna Moon

Chicago, April 21 – HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 2, 2017 linked to Marathon Oil Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 18% if the shares close at or above the 75% downside threshold on the observation date for that month.

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

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% 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 April 28 and settle on May 3.

The Cusip number is 40435D722.

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