HSBC plans contingent yield trigger autocallables tied to two indexes

By Susanna Moon

Chicago, Jan. 23 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due Jan. 29, 2027 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 7% to 8% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter. The exact 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 interest review date after one year.

The payout at maturity will be par unless either index finishes below the 50% downside threshold, 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 Jan. 27 and settle on Jan. 31.

The Cusip number is 40435C575.

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