HSBC plans barrier callables with contingent return on S&P, Russell

New York, May 4 – HSBC USA Inc. plans to price 7.75% callable barrier notes with contingent return due May 31, 2028 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at an annualized rate of at least 7.75% if each index closes at or above its 75% coupon trigger on the related quarterly observation date. The exact coupon will be set at pricing.

HSBC may call the notes at par on any quarterly call date beginning May 31, 2019.

The payout at maturity will be par plus the contingent coupon, if any, unless any index finishes below its 55% barrier level, in which case investors will be fully exposed to any decline of the least performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on May 25 and settle on May 31.

The Cusip number is 40435FA49.

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