HSBC to price contingent income autocallables on Las Vegas Sands

By Marisa Wong

Madison, Wis., March 18 - HSBC USA Inc. plans to price contingent income autocallable securities with step-down redemption threshold due March 28, 2016 linked to Las Vegas Sands Corp. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 2% to 2.5% if Las Vegas Sands stock closes at or above the 70% downside threshold level on the determination date for that quarter.

If the shares close at or above the redemption threshold level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon. The redemption threshold will be 95% of the initial share price for the first four determination dates, 90% of the initial share price for the next four determination dates and 85% of the initial share price for the remaining determination dates.

If Las Vegas Sands stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will be fully exposed to any losses.

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

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

The Cusip number is 40433X209.

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