HSBC plans 9%-9.5% contingent income autocalls tied to tech stocks

By Susanna Moon

Chicago, Jan. 16 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Jan. 29, 2021 linked to the worst performing of the common stocks of Apple Inc., Amazon.com, Inc., Facebook Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% to 9.5% if each stock closes at or above its 60% coupon barrier on observation date for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly call review date beginning July 25, 2018.

The payout at maturity will be par unless any underlying stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 26 and settle on Jan. 31.

The Cusip number is 40435FRF6.

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