HSBC plans autocallable step-up notes on iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., Sept. 23 – HSBC USA Inc. plans to price 0% autocallable step-up securities due Sept. 30, 2020 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Beginning Sept. 27, 2016, the notes will be automatically called at par of $10 plus a call premium of 9% per year if the ETF closes at or above the initial share price on any quarterly determination date.

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

If the final share price is less than the initial share price, investors will be fully exposed to the ETF’s decline from its initial share price.

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

The notes will price Sept. 25 and settle Sept. 30.

The Cusip number is 40434K768.

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