HSBC plans contingent income autocallables linked to Mobileye

By Devika Patel

Knoxville, Tenn., Aug. 19 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 31, 2017 linked to the ordinary stock of Mobileye NV, according to an FWP filing with the Securities and Exchange Commission.

If Mobileye shares close at or above the downside threshold level, 65% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 13.9%.

The notes will be called at par of $10 plus the contingent coupon if Mobileye shares close at or above the initial share price on any of the first three quarterly 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 each 1% decline of the stock.

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

The notes (Cusip: 40435B205) will price on Aug. 26 and settle on Aug. 31.

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