HSBC to issue autocallable barrier notes tied to Russell, S&P

By Emma Trincal

New York, April 4 – HSBC USA Inc. plans to issue 0% autocallable barrier notes with step-up premium due April 10, 2028 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus at least 12.65% per year if each index closes at or above its initial level on any annual valuation date. The exact call premium was to be set at pricing.

The payout at maturity will be par plus 50.6% if each index finishes at or above its initial level.

If the least performing index declines but finishes at or above its threshold level, 70% of its initial level, the payout will be par.

Otherwise, investors will be fully exposed to the decline of the least performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes were set to price on April 3 and to settle on April 8.

The Cusip number is 40447AR48.

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