HSBC plans contingent income barrier autocallables on Intel, IBM

By Marisa Wong

Morgantown, W.Va., Jan. 16 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Jan. 20, 2025 linked to the lesser performing of the common stocks of Intel Corp. and International Business Machines Corp., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its coupon trigger, 60% of its initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 8.85% per year and will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date beginning Jan. 16, 2019.

The payout at maturity will be par plus the final coupon unless either stock finishes below its 60% barrier, in which case investors will be fully exposed to the decline of the worse-performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price on Jan. 17.

The Cusip number is 40435FRM1.

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