HSBC plans contingent income barrier notes linked to Russell 2000

By Susanna Moon

Chicago, July 17 – HSBC USA Inc. plans to price contingent income barrier notes due July 28, 2023 linked to 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 5.75% and 6.25% if the index closes at or above the 70% coupon barrier on a determination date for that quarter. The exact contingent coupon rate will be set at pricing.

The payout at maturity will be par unless the index declines by more than 30%, in which case investors will lose 1% for each 1% decline.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 21.

The Cusip number is 40435FAY3.

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