HSBC plans trigger callable contingent yield notes on indexes

By Sarah Lizee

Olympia, Wash., June 12 – HSBC USA Inc. plans to price trigger callable contingent yield notes due Dec. 17, 2021 linked to the least 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.

Each quarter, the notes will pay a contingent coupon at an annual rate of 9% to 9.5% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.

HSBC may call the notes at par of $10 on any coupon payment date.

The payout at maturity will be par unless any index finishes below its 65% downside threshold level, in which case investors will be fully exposed to the decline of the least performing index.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as selling agent.

The notes will price on June 14 and settle on June 19.

The Cusip number is 40436B568.

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