HSBC plans contingent income autocallable notes tied to SPDR S&P Oil

By Susanna Moon

Chicago, Jan. 24 – HSBC USA Inc. plans to price contingent income autocallable securities due Feb. 1, 2018 linked to the least performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, 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 9.25% if the fund closes at or above its downside threshold, 70% of its initial level, on a review date for that quarter.

The notes will be called at par if the fund closes at or above its initial level on any of the first three determination dates.

The payout at maturity will be par plus the contingent coupon unless the fund finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 27.

The Cusip number is 40435C518.

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