HSBC eyes autocallable contingent income barrier notes on two stocks

By Sarah Lizee

Olympia, Wash., March 25 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due March 31, 2023 linked to the common stocks of Procter & Gamble Co. and Kimberly-Clark Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 9.5% to 11.5% if each stock closes at or above the coupon trigger level, 60% of the initial level, on the observation date for that quarter.

After six months, the notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date other than the final one.

If the notes are not called and each stock finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on March 27.

The Cusip number is 40438CCN9.

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