HSBC plans contingent income callables tied to three indexes

By Susanna Moon

Chicago, Jan. 30 – HSBC USA Inc. plans to price contingent income callable securities due Aug. 5, 2020 linked to the worst 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.

The notes will pay a contingent quarterly coupon at an annual rate of 7.4% if each index closes at or above its 65% coupon barrier on each day during that quarter.

The notes are callable at HSBC’s option at par on any quarterly determination date.

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

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

The notes will price on Jan. 31 and settle on Feb. 5.

The Cusip number is 40435FTH0.

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