HSBC plans contingent income autocallable notes linked to Tesoro

By Susanna Moon

Chicago, Aug. 15 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 27, 2015 linked to Tesoro Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 10.7% if Tesoro stock closes at or above the 75% trigger level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial share price on any of the first three determination dates.

The payout at maturity will be par plus the contingent payment unless the stock finishes below the 75% trigger level, in which case the payout will be a number of Tesoro shares equal to $10 divided by the initial share 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 Aug. 22 and settle on Aug. 27.

The Cusip number is 40434D798.

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