HSBC plans trigger autocallable contingent yield notes tied to indexes

By Susanna Moon

Chicago, April 20 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due April 30, 2019 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 6.5% to 7.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter. The exact contingent coupon will be set at pricing.

The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Oct. 24, 2016.

The payout at maturity will be par unless either index finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent, and UBS Financial Services Inc. will handle distribution.

The notes will price on April 27 and settle on April 29.

The Cusip number is 40434N325.

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