HSBC plans one-year contingent income autocallables linked to Facebook

By Susanna Moon

Chicago, Oct. 21 - HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 30, 2014 linked to Facebook, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 11% if Facebook stock closes at or above the 60% barrier level on a review date for that quarter. The exact contingent quarterly payment will be set at pricing.

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

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 60% trigger level, in which case the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

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

The notes will price on Oct. 25 and settle on Oct 30.

The Cusip number is 40434B701.

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