HSBC plans contingent income barrier autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Feb. 29 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due March 15, 2017 linked to the common stock of Facebook Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook shares close at or above the barrier price, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at a rate that is expected to be 13% to 15% per year and will be set at pricing.

The notes will be called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any quarterly coupon determination date.

If the final share price is greater than or equal to the barrier price, the payout at maturity will be par plus the final contingent coupon. 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 are expected to price March 10.

The Cusip number is 40433UJP2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.