HSBC plans to price contingent income autocallables linked to Baidu

By Wendy Van Sickle

Columbus, Ohio, April 8 – HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 20, 2016 linked to the American depositary shares of Baidu, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Baidu shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of at least 14.65%.

The notes will be called at par of $10 plus the contingent coupon if Baidu shares close at or above the initial share price on any of the first five monthly determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the decline in the shares.

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

The notes will price on April 15 and settle on April 20.

The Cusip number is 40434N382.

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