HSBC plans six-month contingent income autocallables tied to Marathon

By Susanna Moon

Chicago, March 28 – HSBC USA Inc. plans to price contingent income autocallable securities due Oct. 4, 2017 linked to Marathon Petroleum Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 12% if the shares close at or above the 80% downside threshold on the observation date for that quarter.

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 80% 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 31 and settle on April 5.

The Cusip number is 40435D870.

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