HSBC plans contingent income autocallables tied to Palo Alto Networks

By Susanna Moon

Chicago, Jan. 22 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 3, 2016 linked to Palo Alto Networks, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 17% if Palo Alto Networks shares close at or above the coupon barrier level, 75% of the initial share price, on the determination date for that month.

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

The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% trigger level, in which case investors will be fully exposed to any losses.

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

The notes will price on Jan. 29 and settle on Feb. 3.

The Cusip number is 40434N507.

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