HSBC plans autocallable contingent income barrier notes on three stocks

By Wendy Van Sickle

Columbus, Ohio, Feb. 15 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Feb. 8, 2018 linked to the lesser performing of the common stocks of Facebook, Inc., Royal Caribbean Cruises Ltd. and Boeing 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 trigger level, 70% of its initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 18.25% 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.

The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 17.

The Cusip number is 40433US49.

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