HSBC to price contingent income barrier autocalls on three stocks

By Marisa Wong

Morgantown, W.Va., May 16 – HSBC USA Inc. plans to price 20% autocallable contingent income barrier notes due May 22, 2020 linked to the least performing of the American Depositary Shares of Alibaba Group Holding Ltd., the class A common stock of Parsley Energy, Inc. and the common stock of Pioneer Natural Resources Co., 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 20% if each stock closes at or above its coupon trigger, 70% of its initial share price, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date.

The payout at maturity will be par plus the final coupon unless any stock finishes below its 70% barrier, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial price of that stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on May 17.

The Cusip number is 40435M243.

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