HSBC plans 9% one-year contingent coupon autocalls on EAFE fund

By Susanna Moon

Chicago, Aug. 24 – HSBC USA Inc. plans to price autocallable contingent coupon buffered securities with trigger upside and downside due Sept. 6, 2023 linked to the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.

For the first year, the notes will pay a contingent monthly coupon at an annualized rate of at least 9% if each underlying index closes at or above its 90% coupon barrier on each day during that month. There will be no coupon payments made after Sept. 3, 2019.

If the fund closes at or above its 90% threshold on any day during the first year, the notes will be called at par plus the contingent monthly coupon.

If the fund finishes at or above its 90% threshold, the payout will be par plus 1.111 times the return.

Otherwise, investors will lose 1.111% for each 1% decline beyond 10%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Aug. 31 and settle on Sept. 6.

The Cusip number is 40435FR82.

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