HSBC plans autocallable yield notes tied to S&P, Russell

By Sarah Lizee

Olympia, Wash., Jan. 16 – HSBC USA Inc. plans to price autocallable yield notes due May 5, 2021 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 6.1% per year, and interest will be payable monthly.

Beginning July 31, the notes will be called at par if each index closes at or above its initial level on any monthly call observation date.

The payout at maturity will be par unless either index closes below its trigger level, 70% of its initial level, on any day during the life of the notes and the return of the least-performing index is negative, in which case investors will lose 1% for every 1% that the least-performing index finishes below its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 31.

The Cusip number is 40435U2E3.

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