HSBC plans 10.5% contingent income barrier autocalls on three indexes

By Wendy Van Sickle

Columbus, Ohio, July 26 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 2, 2024 linked to the least performing of the Russell 2000 index, the Euro Stoxx Banks index and the Dow Jones industrial average, 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 10.5% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.

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

The payout at maturity will be par unless any index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 30.

The Cusip number is 40435UTA2.

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