HSBC plans 6%-7% contingent yield trigger autocalls on Dow, Russell

By Susanna Moon

Chicago, Aug. 8 – HSBC USA Inc. plans to price trigger autocallable contingent yield notes due Aug. 15, 2023 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes pay a contingent quarterly coupon at an annual rate of 6% to 7% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.

The notes will be called if each index closes at or above its initial level on any quarterly observation date after one year.

The payout at maturity will be par unless either index finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.

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

The notes will price on Aug. 10.

The Cusip number is 40435X595.

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