HSBC plans one-year contingent income autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Dec. 6 - HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 18, 2014 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook stock closes at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 4% for that quarter. The amount is equivalent to 16% per year.

If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

The notes will price Dec. 13 and settle Dec. 18.

The Cusip number is 40434B628.

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