HSBC plans contingent income autocallable notes linked to Blackstone

By Susanna Moon

Chicago, April 17 – HSBC USA Inc. plans to price contingent income autocallable securities due April 27, 2018 linked to Blackstone Group LP shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.55% if the shares close at or above the 80% barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% barrier level, in which case investors will receive a number of Blackstone shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

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

The notes will price on April 24 and settle on April 29.

The Cusip number is 40434G528.

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