HSBC plans 10-year contingent income securities linked to S&P 500

By Susanna Moon

Chicago, Dec. 16 – HSBC USA Inc. plans to price contingent income securities due Jan. 4, 2027 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 at least 7.3% if the index closes at or above its 75% coupon barrier on the determination date for that quarter.

The payout at maturity will be par unless the index finishes below its 60% downside threshold level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will price on Dec. 29 and settle on Jan. 4.

The Cusip number is 40433UE93.

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