HSBC plans to price contingent income barrier autocalls on ETFs

By Sarah Lizee

Olympia, Wash., Aug. 1 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 14, 2026 linked to the least performing of the iShares MSCI EAFE Index ETF, the iShares FTSE China Large-Cap ETF and the S&P Midcap 400 ETF Trust, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after one year.

The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 9.

The Cusip number is 40435UUU6.

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