HSBC plans trigger autocallable contingent yield notes on FedEx

By Marisa Wong

Morgantown, W.Va., March 8 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due March 13, 2020 linked to the common stock of FedEx Corp., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if FedEx shares close at or above the coupon barrier, which is expected to fall between 67% and 72% of the initial share price and will be set at pricing, on the observation date for that quarter.

After six months, the notes will be automatically called at par of $10 if FedEx shares close at or above the initial share price on any observation date.

If the notes are not called and the final share price is greater than or equal to the 67% to 72% downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes will price on March 10.

The Cusip number is 40435D102.

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