HSBC plans autocallable barrier notes tied to S&P 500, Russell 2000

By Susanna Moon

Chicago, Dec. 1 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due Dec. 29, 2017 linked to the S&P 500 index and the Russell 2000 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 at least 7.25% if each index closes at or above its coupon trigger, 70% of the initial level, on a quarterly observation date.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning June 26, 2017.

The payout at maturity will be par plus the contingent coupon unless either index finishes below its initial level and either index ever closes below the 70% barrier level during the life of the notes, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 21 and settle on Dec. 27.

The Cusip number is 40433UD29.

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