HSBC plans contingent income autocallables linked to Mosaic

By Jennifer Chiou

New York, Nov. 22 - HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 5, 2016 linked to Mosaic Co. shares, according to an FWP with the Securities and Exchange Commission.

If Mosaic stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of at least 9.5% 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 11 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 75% downside threshold level, in which case the payout will be a number of Mosaic shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes (Cusip: 40434B727) are expected to price on Nov. 29 and settle on Dec. 4.

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

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