HSBC plans contingent coupon buffered notes with trigger linked to S&P

By Susanna Moon

Chicago, Nov. 21 – HSBC USA Inc. plans to price contingent coupon buffered securities with trigger upside participation and downside participation due Aug. 31, 2021 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 4.4% to 4.7% if the index closes at or above the coupon barrier level, 80% of the initial level, on each day during the observation period for that quarter. Otherwise, no more coupon payments will be made.

The payout at maturity will be par unless the index ever closes below the 80% knockout level during the life of the notes, in which case investors will either receive 1.25% for each 1% gain above the knockout level or lose 1.25% for each 1% decline beyond 20%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Dec. 9 and settle on Dec. 14.

The Cusip number is 40433UZE9.

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