HSBC plans to price barrier digital return notes tied to S&P, Russell

By Devika Patel

Knoxville, Tenn., March 23 – HSBC USA Inc. plans to price 0% barrier digital return notes due May 29, 2019 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to an FWP filed with the Securities and Exchange Commission.

If neither index closes below the barrier level, 67.5% of the initial level, during the life of the notes, the payout at maturity will be par plus the digital return of at least 8.35%. The exact digital return will be set at pricing.

If one or both indexes closes below the barrier level and neither index finishes below its initial level, the payout at maturity will be par.

Otherwise, investors will lose 1% for each 1% decline of the worst performing index.

HSBC Securities (USA) Inc. is the agent.

. The notes (Cusip: 40435FWQ6) are expected to price on March 26 and settle on March 29.

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