HSBC eyes autocallable barrier notes with contingent return on indexes

Chicago, Feb. 27 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due March 5, 2024 linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 7% if each index closes at or above its coupon trigger, 60% of the initial level, on a quarterly observation date. The exact coupon will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning on March 2, 2020.

The payout at maturity will be par plus the contingent coupon unless either index finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 28 and settle on March 5.

The Cusip number is 40435UFZ2.

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