HSBC plans contingent income autocallables linked to Micron Technology

By Toni Weeks

San Luis Obispo, Calif., Nov. 3 – HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 13, 2015 linked to the common stock of Micron Technology, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of at least 3.625%, equal to 14.5% per year, if Micron stock closes at or above the 75% downside threshold level on the determination date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any determination date other than the final date.

If the notes are not called and Micron stock finishes at or above the 75% downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Micron stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as dealer.

The notes will price Nov. 7 and settle Nov. 13.

The Cusip number is 40434D160.

© 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.