HSBC plans 6.25% autocallable yield notes on S&P 500, Russell 2000

By Devika Patel

Knoxville, Tenn., March 22 – HSBC USA Inc. plans to price 6.25% autocallable yield notes due Sept. 28, 2018 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly, with the exact coupon to be set at pricing.

Beginning Sept. 25, 2017, the notes will be called at par of $1,000 plus the interest payment if each index closes at or above its initial level on any quarterly review date other than the final one.

The payout at maturity will be par plus the final interest payment unless either index closes below its 70% trigger level on any day during the life of the notes and either index finishes below its initial level, in which case investors will lose 1% for each 1% decline of the worst performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40433UW28) will price on March 28 and settle on March 31.

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