HSBC plans to price autocallable step-up notes linked to Euro Stoxx 50

By Angela McDaniels

Tacoma, Wash., Aug. 20 – HSBC USA Inc. plans to price 0% autocallable step-up securities due Aug. 26, 2020 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

Beginning Aug. 23, 2016, the notes will be automatically called at par of $10 plus a call premium of 9% per year if the index closes at or above the initial index level on any quarterly determination date.

If the notes are not called and the final index level is greater than or equal to the initial index level, the payout at maturity will be par plus 45%.

If the final index level is less than the initial index level but greater than or equal to the downside threshold value, 78% of the initial index level, the payout will be par.

If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.

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

The notes will price Aug. 21 and settle Aug. 26.

The Cusip number is 40434K305.

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