HSBC to price trigger callable contingent yield notes on indexes

By Tali Rackner

Minneapolis, Jan. 10 – HSBC USA Inc. plans to price trigger callable contingent yield notes with daily coupon observation due July 20, 2020 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index’s closing level remains at or above its coupon barrier, 75% of its initial level, on each day during that quarter. The contingent coupon rate is expected to be 10% to 10.5% per year and will be set at pricing.

The notes will be callable at par of $10 on each quarterly observation date other than the final one.

If the notes are not called and each index finishes at or above its 75% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes are expected to price on Jan. 12 and settle on Jan. 18.

The Cusip number is 40435J521.

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