HSBC to price contingent income barrier autocallables linked to stocks

By Marisa Wong

Morgantown, W.Va., Dec. 12 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Dec. 18, 2019 linked to the least performing of the common stocks of Boeing Co., JPMorgan Chase & Co. and Netflix, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its coupon trigger, 70% of its initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 17% per year and will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.

The payout at maturity will be par plus the final coupon unless any stock finishes below its 70% barrier, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price Dec. 13.

The Cusip number is 40435J745.

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