HSBC plans one-year contingent income autocallables tied to US Airways

By Susanna Moon

Chicago, Nov. 21 - HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 28, 2014 linked to US Airways Group, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If US Airways stock closes at or above the 60% barrier level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of at least 13% for that quarter. The exact contingent quarterly coupon will be set at pricing.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 60% downside threshold level, in which case the payout will be a number of US Airways shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent with distribution through Morgan Stanley Smith Barney LLC.

The notes will price on Nov. 22 and settle on Nov. 27.

The Cusip number is 40434B750.

© 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.