HSBC plans 4.25- to 4.75-year contingent coupon buffered notes on S&P

By Marisa Wong

Morgantown, W.Va., March 20 – HSBC USA Inc. plans to price 4.25- to 4.75-year contingent coupon buffered securities with trigger upside participation and downside participation linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

A knock-out event will occur if the index closes below its coupon trigger level, 80% of its initial level, on any trading day.

The notes will pay a contingent monthly coupon at an annual rate of 4% unless a knock-out event has occurred during any monthly observation period, in which case, no coupon will be paid that month or any subsequent month.

The payout at maturity will be par unless a knock-out event has occurred, in which case investors will either receive 1.25% for each 1% index return above negative 20% or lose 1.25% for each 1% decline beyond 20%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on March 23.

The Cusip number is 40433UZ33.

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