HSBC plans trigger autocallable contingent yield notes linked to Ford

By Devika Patel

Knoxville, Tenn., Feb. 2 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due Feb. 8, 2022 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 10% per year if Ford shares close at or above the downside threshold level, which is expected to fall between 64.5% and 69.5% of the initial share price and will be set at pricing, on the observation date for that month.

After one year, the notes will be automatically called at par of $10 if Ford shares close at or above the initial share price on any observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes (Cusip: 40435C260) will price on Feb. 3 and settle on Feb. 8.

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