HSBC plans contingent income autocallables linked to Regeneron

By Wendy Van Sickle

Columbus, Ohio, July 7 – HSBC USA Inc. plans to price contingent income autocallable securities due Jan. 20, 2017 linked to the common stock of Regeneron Pharmaceuticals, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Regeneron shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of at least 15.05%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Regeneron shares close at or above the initial share price on any of the first five 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 be fully exposed to the losses.

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

The notes will price on July 15 and settle on July 20.

The Cusip number is 40434V459.

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