HSBC to price contingent income autocallables on Twilio

By Sarah Lizee

Olympia, Wash., March 2 – HSBC USA Inc. plans to price contingent income autocallable securities due March 11, 2021 linked to Twilio Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 10.5% if the stock closes at or above the downside threshold level, 60% of the initial share price, on a determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial level on any of the first three determination dates.

The payout at maturity will be par unless the stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.

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

The notes will price on March 6.

The Cusip number is 40438J502.

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