HSBC plans 10.5% contingent income barrier autocalls on index, funds

By Susanna Moon

Chicago, Dec. 15 – HSBC USA Inc. plans to price autocallable contingent income barrier due Dec. 9, 2024 linked to the least performing of the S&P 500 index, the iShares FTSE China Large-Cap exchange-traded fund and the S&P Midcap 400 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of at least 10.5% if each underlying asset closes at or above the 75% coupon barrier on the observation date for that quarter.

The notes will be called at par if each asset closes at or above its initial level on any review date after one year.

The payout at maturity will be par unless any underlying component finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worst performing asset.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 20 and settle on Dec. 26.

The Cusip number is 40435FNY9.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.