HSBC to price contingent income barrier autocallables on four stocks

By Marisa Wong

Morgantown, W.Va., Dec. 19 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Dec. 28, 2020 linked to the least performing of the common stocks of Apple Inc., Amazon.com, Inc., Facebook Inc. and Alphabet Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its coupon trigger, 60% of its initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be 9.25% to 9.75% per year and will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date beginning June 25, 2018.

The payout at maturity will be par plus the final coupon unless any stock finishes below its 60% barrier, in which case investors will be fully exposed to the decline of the worst-performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 20.

The Cusip number is 40435FPL5.

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