HSBC plans contingent income autocallable notes linked to Regeneron

By Susanna Moon

Chicago, June 19 – HSBC USA Inc. plans to price contingent income autocallable securities due June 30, 2016 linked to Regeneron Pharmaceuticals, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 10.85% if the shares close at or above the 75% barrier level 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 the initial price on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% barrier level, in which case investors will receive a number of Regeneron shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

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

The notes will price on June 26 and settle on July 1.

The Cusip number is 40434E879.

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