HSBC alters dates, coupon for autocallable yield notes tied to Valeant

By Toni Weeks

San Luis Obispo, Calif., April 15 - HSBC USA Inc. changed the pricing, settlement, call and maturity dates as well as the coupon for its upcoming issue of autocallable yield notes linked to Valeant Pharmaceuticals International, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will bear interest at a rate that is expected to be at least 11%, which is lower than the previously reported coupon of at least 13.75%. The exact rate will be set at pricing. Interest is payable quarterly.

The notes will be called at par if the stock closes at or above its initial level on any quarterly call date beginning Oct. 30, previously Oct. 21.

A trigger event will occur if the shares fall by more than 30% on any day during the life of the notes.

The payout at maturity will be par unless a trigger event has occurred and the stock finishes below its initial level, in which case investors will be exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

The notes will now price on April 29 and settle on May 2, revised from April 21 and April 24, respectively.

The Cusip number is 40432XYL9.

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