HSBC plans one-year contingent income autocallables linked to Facebook

By Susanna Moon

Chicago, Oct. 17 – HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 29, 2015 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 10.45% if the stock closes at or above the 70% barrier level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the stock finishes at or above the barrier level, the payout at maturity will be par plus the final coupon.

Otherwise, the payout will be a number of U.S. Steel shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Oct. 24 and settle on Oct. 29.

The Cusip number is 40434D350.

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