HSBC plans autocallable contingent income barrier notes tied to three stocks

By Sarah Lizee

Olympia, Wash., Jan. 13 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Jan. 23, 2023 linked to the lesser performing of the common stocks of Lear Corp., Lockheed Martin Corp. and Raytheon Co., according to an 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 11.4% if each stock closes at or above its coupon trigger level, 60% of its initial share price, 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 six months.

The payout at maturity will be par plus the final coupon unless any stock finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing stock from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Jan. 15.

The Cusip number is 40435U2Y9.

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