HSBC plans contingent income barrier notes linked to three indexes

By Angela McDaniels

Tacoma, Wash., Aug. 29 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due June 14, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 6% to 7.25% per year and will be set at pricing.

The notes will be called at par if each index closes at or above its initial level on any coupon observation date.

If the return of each index is greater than or equal to negative 30%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index declines from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price Sept. 9.

The Cusip number is 40435UXD1.

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