HSBC plans autocallable contingent income barrier notes on Alibaba

By Sarah Lizee

Olympia, Wash., Oct. 3 – HSBC USA Inc. plans to price 8.5% autocallable contingent income barrier notes due Jan. 9, 2020 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay an 8.5% contingent coupon if Alibaba stock closes at or above the coupon trigger level, 65% of the initial share price, on the observation date for that quarter.

The notes will be called at par plus the coupon if the stock closes at or above the initial price on any quarterly call observation date beginning April 4, 2019.

The payout at maturity will be par plus the final coupon unless the stock closes below its 65% barrier price on any day during the life of the notes, in which case investors will be fully exposed to the decline in the stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Oct. 4 and settle on Oct. 10.

The Cusip number is 40435F5D5.

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