HSBC plans contingent yield trigger callables tied to three indexes

By Susanna Moon

Chicago, Aug. 24 – HSBC USA Inc. plans to price trigger callable contingent yield notes with daily coupon observation due Aug. 31, 2020 linked to the least 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.

The notes will pay a contingent quarterly coupon at an annual rate of 8% to 8.5% if each index closes at or above its 65% coupon barrier on each trading day during the observation period for that quarter.

The notes are callable at par on any observation date other than the final date.

The payout at maturity will be par plus the contingent coupon unless any index finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.

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

The notes will price on Aug. 25.

The Cusip number is 40435G485.

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