HSBC plans contingent income autocallables linked to American Airlines

By Susanna Moon

Chicago, April 4 – HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 13, 2016 linked to American Airlines Group 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 11.1% if the shares close at or above the 75% downside threshold level on the observation date for that month.

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 five determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold, in which case investors will be fully exposed to any losses.

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

The notes will price on April 8 and settle on April 13.

The Cusip number is 40434N432.

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