HSBC eyes contingent income autocallable securities linked to MetLife

By Devika Patel

Knoxville, Tenn., July 5 – HSBC USA Inc. plans to price contingent income autocallable securities due July 10, 2020 linked to MetLife, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annualized rate of 9.1% if the shares close at or above the 80% threshold level on the observation date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above the initial price on any of the first 11 quarterly determination dates, beginning Oct. 9.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% threshold level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.

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

The notes (Cusip: 40435G402) will price July 7 and settle July 12.

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