HSBC plans three-year contingent income autocallables tied to Amgen

By Susanna Moon

Chicago, Aug. 9 – HSBC USA Inc. plans to price contingent income autocallable step up securities due Aug. 14, 2020 linked to Amgen Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of at least 8.3% if the shares close at or above the 80% downside threshold on a determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the call level on any of the first 11 determination dates. The call level will be 105% of the initial share price on the first four determination dates, stepping up to 110% of the initial share price for the fifth through eighth determination dates and to 115% of the initial share price for the ninth through 11th determination dates.

The payout at maturity will be par unless the stock finishes below the 80% downside threshold, in which case investors will be fully exposed to any losses.

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

The notes will price on Aug. 11 and settle on Aug. 16.

The Cusip number is 40435G683.

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