HSBC plans contingent income callable securities linked to indexes

By Angela McDaniels

Tacoma, Wash., July 17 – HSBC USA Inc. plans to price contingent income callable securities due Jan. 24, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 75% of its initial level, on every trading day during that quarter. The contingent coupon rate is expected to be at least 9.65% per year and will be set at pricing.

Beginning Jan. 22, 2018, the notes will be callable at par quarterly.

If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

The notes will price July 21.

The Cusip number is 40435FCH8.

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