HSBC to price trigger callable contingent yield notes on indexes

By Marisa Wong

Morgantown, W.Va., Nov. 27 – HSBC USA Inc. plans to price trigger callable contingent yield notes with daily coupon observation due Dec. 3, 2020 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index’s closing level remains at or above its downside threshold, 70% of its initial level, on each day during that quarter. The contingent coupon rate is expected to be at least 9.5% per year and will be set at pricing.

The notes will be callable at par of $10 on each quarterly observation date other than the final one.

If the notes are not called and each index finishes at or above its downside threshold level, the payout at maturity will be par. 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 Nov. 28.

The Cusip number is 40435J703.

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