HSBC plans 9.75% contingent income autocalls tied to CVS Health

By Susanna Moon

Chicago, Aug. 22 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 27, 2021 linked to CVS Health Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of at least 9.75% if the stock closes at or above the 75% coupon barrier on the observation date for that quarter.

The notes will be called at par if the stock closes at or above its initial level on any of the first 11 determination dates.

The payout at maturity will be par unless the underlying stock finishes below its 75% trigger level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Aug. 24.

The Cusip number is 40435X512.

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