HSBC plans contingent income autocallable notes tied to Facebook

By Devika Patel

Knoxville, Tenn., Feb. 19 – HSBC USA Inc. plans to price contingent income autocallable securities due March 3, 2017 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 10.9% if the shares close at or above the 65% downside threshold level on the observation date for that quarter.

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

The payout at maturity will be par plus the final coupon unless the shares finish below the 65% downside threshold level, in which case investors will be fully exposed to the decline.

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

The notes (Cusip: 40434N697) will price on Feb. 26 and settle March 2.

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