HSBC plans 7.35% contingent return barrier callables tied to indexes

By Susanna Moon

Chicago, Dec. 15 – HSBC USA Inc. plans to price callable barrier notes with contingent return due Dec. 29, 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 annualized rate of at least 7.35% if each underlying index closes at or above the 75% coupon barrier on the observation date for that quarter.

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

The payout at maturity will be par unless either underlying index finishes below its 55% 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 Dec. 26 and settle on Dec. 29.

The Cusip number is 40435FNM5.

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