HSBC plans 5.45% contingent return autocalls tied to bank, EM funds

By Susanna Moon

Chicago, June 14 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due June 27, 2022 linked to the lesser performing of the SPDR S&P Bank ETF and the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 9.5% to 10.5% if each underlying fund closes at or above its 70% coupon barrier on the observation date for that quarter.

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

The payout at maturity will be par plus 10% unless either fund 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 underwriter.

The notes will price on June 22 and settle on June 27.

The Cusip number is 40435FH26.

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