HSBC eyes autocallable barrier notes with step-up premium on indexes

By Sarah Lizee

Olympia, Wash., Jan. 10 – HSBC USA Inc. plans to price 0% autocallable barrier notes with step-up premium and step-down call threshold due Jan. 31, 2023 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if each index closes at or above its call threshold. The call premium will be at least 10% per year. The call threshold will be 100%, 95% and 90% of each index’s initial level on the first, second and final observation dates, respectively.

If the notes are not called and each index finishes at or above its barrier level, 70% of its initial level, the payout will be par.

Otherwise, investors will be fully exposed to the decline of the lesser performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 28.

The Cusip number is 40435U2G8.

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