HSBC plans contingent income autocallable notes linked to Blackstone

By Susanna Moon

Chicago, March 1 – HSBC USA Inc. plans to price contingent income autocallable securities due March 6, 2020 linked to Blackstone Group LP 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 12.5% if the shares close at or above the 75% downside threshold on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if Blackstone shares close at or above the initial level on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold, in which case investors will lose 1% for each 1% decline.

HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.

The notes will price on March 3.

The Cusip number is 40435H830.

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