HSBC plans contingent income autocallable notes linked to Ctrip.com

By Tali Rackner

Minneapolis, Sept. 28 – HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 2, 2020 linked to the American Depositary Shares of Ctrip.com International, Ltd., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annualized rate of at least 8% if the shares close at or above the 80% downside threshold level on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above the initial price on any of the first 11 quarterly determination dates, beginning Dec. 28.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.

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

The notes will price on Sept. 29 and settle on Oct. 4.

The Cusip number is 40435G170.

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