HSBC plans contingent income barrier autocallables tied to stocks

By Sarah Lizee

Olympia, Wash., May 14 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due May 22, 2023 linked to the least performing of the common stocks of Bank of America Corp., salesforce.com, Inc. and NIKE, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at an annual rate of 14% if each stock closes at or above its coupon trigger price, 52.5% of the initial share price, on the observation date for that month.

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

If the notes are not called, the payout at maturity will be par unless any stock finishes below its 52.5% trigger level, in which case investors will be fully exposed to the decline of the least performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on May 19.

The Cusip number is 40438CHA2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.