HSBC announces plans to sell autocallable yield notes on three stocks

By Devika Patel

Knoxville, Tenn., Sept. 26 – HSBC USA Inc. intends to price autocallable yield notes due Oct. 9, 2018 linked to the least performing of the common stocks of Bank of America Corp., Citigroup Inc. and Goldman Sachs Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a coupon of at least 10%. The exact rate will be set at pricing. Interest will be payable quarterly.

Beginning Jan. 3, 2018, the notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless any stock finishes below its trigger level, 80% of its initial share price, in which case investors will receive a number of shares of the worst-performing stock equal to the principal divided by the initial share price, or at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435G139) will price Oct. 3 and settle Oct. 6.

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