HSBC plans contingent return barrier callables tied to S&P, Russell

By Susanna Moon

Chicago, Aug. 14 – HSBC USA Inc. plans to price callable barrier notes with contingent return due Aug. 30, 2027 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate if each index closes at or above the 70% coupon barrier on a coupon observation date for that quarter. The contingent coupon will be 7% for the first five years, stepping up to 8% for years six through eight and to 10% for years nine through 10.

The notes are callable at par on any call date after one year.

The payout at maturity will be par unless either index finishes below its 50% trigger 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 Aug. 25 and settle on Aug. 30.

The Cusip number is 40435FEH6.

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