HSBC plans callable notes with contingent return tied to two indexes

By Susanna Moon

Chicago, April 25 – HSBC USA Inc. plans to price callable notes with contingent return due May 4, 2021 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 4.65% if each index closes at or above the 50% barrier level on the observation date that quarter.

The notes will be callable quarterly beginning May 4, 2017.

The payout at maturity will be par plus the final contingent payment unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 29 and settle on May 4.

The Cusip number is 40433UDM5.

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