HSBC to settle barrier participation notes with call feature on oil stocks

By Emma Trincal

New York, May 20 – HSBC USA Inc. plans to price 0% barrier participation notes due May 25, 2022, linked to the least performing of the stocks of Chevron Corp., Marathon Petroleum Corp., and Valero Energy Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if each stock closes at or above its call threshold, 110% of its initial price. The call premium, which will be set at pricing, will be at least 40%.

If the notes are not called and each stock finishes at or above its initial level, the payout at maturity will be par plus 2x the return of the least performing stock.

If any stock falls but each stock finishes at or above its 50% barrier level, the payout will be par.

Otherwise, investors will be fully exposed to the decline of the worst performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes were set to price on May 20 and to settle on May 25.

The Cusip number is 40428HQH8.

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