HSBC plans contingent return barrier autocallables tied to two indexes

By Susanna Moon

Chicago, April 11 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due July 31, 2018 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 5.5% if each index closes at or above the 70% coupon barrier on a coupon observation date for that quarter.

The notes will be called at par if each index closes at or above its initial level on any annual call date beginning Oct. 26, 2017.

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

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 25 and settle on April 28.

The Cusip number is 40433U2U9.

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