HSBC plans contingent yield trigger autocalls tied to Russell, FTSE

By Susanna Moon

Chicago, Sept. 12 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due Sept. 21, 2020 linked to the lesser performing of the Russell 2000 index and the FTSE 100 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 6% to 7% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.

The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning on March 15, 2018.

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

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

The notes will price on Sept. 15 and settle on Sept. 20.

The Cusip number is 40435G261.

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