HSBC plans contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., April 14 – HSBC USA Inc. plans to price contingent income autocallable securities due May 4, 2023 linked to the worst performing of the Euro Stoxx 50 index, the Nikkei 225 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter. The contingent coupon rate is expected to be at least 10.5% per year and will be set at pricing.

The notes will be automatically called at par of $10 plus the contingent coupon if each index closes at or above its initial index level on any of the first 27 quarterly redemption determination dates.

If each index finishes at or above its downside threshold level, 55% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if applicable. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

The notes will price April 28.

The Cusip number is 40434N366.

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