HSBC plans contingent income autocallable notes linked to Marathon

By Marisa Wong

Morgantown, W.Va., March 15 – HSBC USA Inc. plans to price contingent income autocallable securities due Sept. 21, 2017 linked to Marathon Oil Corp. stock, according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at an annual rate of 16% if the shares close at or above the 75% downside threshold on the observation date for that month.

The notes will be called at par plus the contingent coupon if the shares close at or above the initial level 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 lose 1% for each 1% decline.

HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.

The notes will price on March 17.

The Cusip number is 40435H665.

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