HSBC plans 8.25% contingent income barrier autocalls on two funds

By Susanna Moon

Chicago, July 18 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due July 25, 2023 linked to the lesser performing of the Financial Select Sector SPDR Fund and SPDR S&P Oil & Gas Exploration & Production ETF, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if each stock closes at or above its 65% coupon barrier on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.

The payout at maturity will be par unless any stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 20 and settle on July 25.

The Cusip number is 40435FQ42.

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