HSBC plans barrier digital return notes on S&P 500, iShares MSCI EM

By Marisa Wong

Morgantown, W.Va., June 12 – HSBC USA Inc. plans to price 0% barrier digital return notes due Aug. 20, 2018 linked to the lesser performing of the S&P 500 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If neither underlying ever closes below its barrier level, 65% of its initial level, during the life of the notes, the payout at maturity will be par plus the digital return of at least 7.4%.

If either underlying ever closes below its barrier level but neither underlying finishes below its initial level, the payout will be par.

Otherwise, investors will be fully exposed to the decline of the lesser performer.

HSBC Securities (USA) Inc. is the agent.

The notes will price June 14.

The Cusip number is 40433U7D2.

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