HSBC plans contingent income autocallables linked to Bank of America

By Susanna Moon

Chicago, Dec. 27 – HSBC USA Inc. plans to price contingent income autocallable securities due Jan. 3, 2018 linked to Bank of America Corp. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if the stock closes at or above its 75% coupon barrier on the determination date for that quarter.

The notes will be called if the stock finishes at or above its initial level on any of the first three determination dates.

The payout at maturity will be par unless the stock finishes below its 75% downside threshold level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will price on Dec. 29 and settle on Jan. 4.

The Cusip number is 40435C807.

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