HSBC plans autocallable notes linked to basket of biotech ETF, stocks

By Marisa Wong

Morgantown, W.Va., Feb. 7 – HSBC USA Inc. plans to price 0% autocallable notes due Feb. 14, 2022 linked to a basket consisting of the iShares Nasdaq Biotechnology exchange-traded fund and three biotechnology sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The ETF has a 67% weight in the basket, and each of the three stocks – Amgen Inc., Biogen Inc. and Celgene Corp. – has an 11% weight.

The notes will be called at par plus an annualized call premium of 13.75% to 14.75% if the basket closes at or above 110% of its initial level on any of the annual call observation dates. The exact call premium will be set at pricing.

If the basket finishes at or above the 110% call level, the payout at maturity will be par plus the final call premium of 68.75% to 73.75%.

If the basket finishes below the call level but at or above the 85% barrier level, the payout will be par.

If the basket finishes below the barrier level, investors will be fully exposed to any basket decline.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 8.

The Cusip number is 40433UR40.

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