HSBC to price autocallable barrier notes linked to bank ETF, Russell

By Wendy Van Sickle

Columbus, Ohio, Feb. 9 – HSBC USA Inc. plans to price 0% autocallable barrier notes with contingent return due Jan. 20, 2021 linked to the Russell 2000 index and the SPDR S&P Bank exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium if each underlier closes at or above its initial level on an annual call date. The call premium is expected to be 11% to 12% per year and will be set at pricing.

If the notes are not called and the final return of the least-performing underlier is less than zero but greater than or equal to negative 30%, the payout at maturity will be par plus 10%. Otherwise, investors will lose 1% for every 1% that the least-performing underlier’s final level is less than its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price Feb. 17.

The Cusip number is 40433UN28.

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