HSBC plans two-year market-linked autocallables on indexes

By Wendy Van Sickle

Columbus, Ohio, Feb. 24 – HSBC USA Inc. plans to price market-linked securities – autocallable with contingent coupon and contingent downside due March 2019 linked to the least performing of the S&P500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes pay a quarterly coupon at an annual rate of 6% to 7% if each index closes at or above its 65% coupon trigger on the observation date for the quarter.

Beginning Aug. 26, the notes will be called at par plus the coupon if each index closes at or above its initial level on any observation date.

The payout at maturity will be par unless any index finishes below its 65% barrier level, in which case investors will be fully exposed to the loss of the least-performing index.

The notes will price on Feb. 28.

The Cusip number is 40433UQ82.

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