HSBC plans callables with contingent return on S&P, Dow, Russell

New York, July 2 – HSBC USA Inc. plans to price 8.25% callable notes with contingent return due July 31, 2024 linked to the least performing of the S&P 500 index, the Dow Jones Industrial average and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Every six months, the notes will pay a contingent coupon at an annual rate of at least 8.25% if each index closes at or above its 70% coupon trigger on the observation date for that semiannual period. The exact coupon will be set at pricing.

Beginning Aug. 2, 2021, the notes will be callable by HSBC semiannually at par.

The payout at maturity will be par plus the final contingent coupon unless any underlying finishes below its barrier level, 70% of its initial level, in which case investors will be fully exposed to the decline of the worst-performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 24 and settle on July 31.

The Cusip number is 40435FP35.

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