HSBC plans autocallable contingent income barrier notes on Caterpillar

By Sarah Lizee

Olympia, Wash., Nov. 19 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Nov. 25, 2022 linked to the common stock of Caterpillar Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay an 12% contingent coupon if the stock closes at or above the coupon trigger level, 75% of the initial share price, on the observation date for that quarter.

The notes will be called at par plus the coupon if the stock closes at or above the initial price on any quarterly call observation date beginning May 20, 2020.

The payout at maturity will be par plus the final coupon unless the stock finishes below its 75% barrier price, in which case investors will be fully exposed to the decline in the stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Nov. 20.

The Cusip number is 40435UL28.

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