HSBC to price contingent income autocallables linked to First Solar

By Toni Weeks

San Luis Obispo, Calif., April 9 – HSBC USA Inc. plans to price contingent income autocallable securities due April 21, 2016 linked to First Solar, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of at least 4% if the shares close at or above the 75% downside threshold level on the observation date for that quarter. The coupon is equivalent to an interest rate of 16% per year, and the exact rate will be set at pricing.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will receive a number of First Solar shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

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

The notes will price April 17 and settle April 22.

The Cusip number is 40434G577.

© 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.