HSBC to price contingent income autocallables linked to MGM Resorts

By Tali Rackner

Norfolk, Va., Nov. 3 – HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 14, 2016 linked to the common stock of MGM Resorts International, according to an FWP filing with the Securities and Exchange Commission.

If MGM shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 13.35%.

The notes will be called at par of $10 plus the contingent coupon if MGM shares close at or above the initial share price on any of the first three determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes are expected to price on Nov. 6 and settle on Nov. 12.

The Cusip number is 40434K545.

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