HSBC plans contingent income autocallables linked to Freeport-McMoRan

By Susanna Moon

Chicago, June 1 – HSBC USA Inc. plans to price contingent income autocallable securities due June 9, 2016 linked to Freeport-McMoRan Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.45% if Freeport-McMoRan shares close at or above the barrier level, 70% of the initial share price, on a determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Freeport-McMoRan shares close at or above the initial share price on any of the first three determination dates.

If the stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will receive a number of Freeport-McMoRan shares equal to $10 divided by the initial share 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 5 and settle on June 10.

The Cusip number is 40434G130.

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