HSBC plans barrier autocalls with contingent return tied to indexes

By Wendy Van Sickle

Columbus, Ohio, Jan. 17 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due April 24, 2020 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 8.5% if each index closes at or above its coupon trigger, 70% of the initial level, on the related observation date.

The notes will be automatically called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning on July 19, 2019.

The payout at maturity will be par plus the contingent coupon, if any, unless either index finishes below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 18 and settle on Jan. 24.

The Cusip number is 40435UEL4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.