HSBC plans contingent income autocallables tied to FedEx

By Sarah Lizee

Olympia, Wash., July 21 – HSBC USA Inc. plans to price contingent income autocallable securities due July 29, 2021 linked to FedEx Corp. common stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 10.25% if the stock closes at or above the downside threshold level, 65% of the initial share price, on a determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial level on any quarterly determination date.

The payout at maturity will be par unless the stock finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses.

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

The notes will price on July 24.

The Cusip number is 40438J395.

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