HSBC plans trigger callable contingent yield notes on three indexes

By Marisa Wong

Morgantown, W.Va., June 20 – HSBC USA Inc. plans to price trigger callable contingent yield notes with daily coupon observation due June 29, 2020 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 9% if each index’s closing level is at least 70% of its initial level on each trading day for that quarter.

The notes will be callable in whole at par on any quarterly observation date other than the final one.

If the notes are not called and each index finishes at or above its 60% downside threshold level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes will price on June 21.

The Cusip number is 40435D169.

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