HSBC to price contingent income barrier autocallables on three stocks

By Marisa Wong

Morgantown, W.Va., Jan. 17 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Jan. 24, 2020 linked to the least performing of the common stocks of Diamondback Energy, Inc., Morgan Stanley and Pioneer Natural Resources Co., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its coupon trigger, 70% of its initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 15.75% per year and will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date prior to maturity.

The payout at maturity will be par plus the final coupon unless any stock finishes below its 70% barrier, in which case investors will be fully exposed to the decline of the worst-performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 19.

The Cusip number is 40435J430.

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