HSBC plans 10.25%-11.25% contingent return callables on two funds

By Susanna Moon

Chicago, May 10 – HSBC USA Inc. plans to price callable notes with contingent return and step-down call threshold due May 25, 2021 linked to the least performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 10.25% to 11.25% if each underlying asset closes at or above its 70% coupon barrier on any observation date for that period.

The notes are callable at on any semiannual review date.

The payout at maturity will be par unless either underlying asset finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.

HSBC Securities (USA) Inc. is the agent.

The notes will price on May 18 and settle on May 25.

The Cusip number is 40435FYT8.

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