HSBC plans contingent income autocallable notes linked to lululemon

By Susanna Moon

Chicago, Feb. 20 – HSBC USA Inc. plans to price contingent income autocallable securities due March 3, 2016 linked to lululemon athletica inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 16% if the shares close at or above the 80% barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% trigger level, in which case investors will receive a number of lululemon shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Feb. 27 and settle on March 4.

The Cusip number is 40434F249.

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