HSBC plans contingent income barrier autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Sept. 30 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Oct. 11, 2016 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the stock closes at or above the barrier level, 75% of the initial share price, on the determination date for that quarter. The contingent coupon rate is expected to be 10.5% to 11.5% per year and will be set at pricing.

The notes will be automatically called at par if Facebook stock closes at or above the initial share price on any quarterly call observation date.

If the notes are not called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par. Otherwise, the payout will be a number of Facebook shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

The notes will price Oct. 6 and settle Oct. 9

The Cusip number is 40433UBS4.

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