HSBC plans three-year contingent income autocallables linked to InterOil

By Susanna Moon

Chicago, Dec. 20 - HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 30, 2016 linked to InterOil Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If InterOil stock closes at or above the downside threshold level, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon at an annual rate of 23% for that quarter.

If the shares close 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 and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of InterOil 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 Wealth Management.

The notes will price on Dec. 26 an settle on Dec. 31.

The Cusip number is 40434B552.

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