HSBC to price autocallable contingent income securities tied to AT&T

By Sarah Lizee

Olympia, Wash., Oct. 11 – HSBC USA Inc. plans to price autocallable contingent income securities due Oct. 15, 2021 linked to the common stock of AT&T Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 9.1% if the stock closes at or above its 80% coupon barrier on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above its initial share price on any of the first 11 determination dates.

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

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

The notes will price on Oct. 12.

The Cusip number is 40436A404.

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