HSBC plans to price barrier digital return notes tied to S&P, Russell

By Devika Patel

Knoxville, Tenn., Feb. 2 – HSBC USA Inc. plans to price 0% barrier digital return notes due April 9, 2018 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to an FWP filed with the Securities and Exchange Commission.

A trigger event occurs if either index closes below the 60% barrier level on any day during the life of the notes.

If a trigger event does not occur, the payout at maturity will be par plus a digital return of 5.5%.

If a trigger event occurs but both indexes finish at or above their initial levels, the payout will be par.

If a trigger event occurs but either index finishes below its initial level, investors will lose 1% for each 1% decline of the worse performing index.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40433UQ58) are expected to price on Feb. 3 and settle on Feb. 8.

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