HSBC plans autocallable contingent income barrier notes on Russell, S&P

By Sarah Lizee

Olympia, Wash., Sept. 23 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Dec. 30, 2020 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 5.9% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for that period.

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

The payout at maturity will be par plus the final coupon unless any index finishes below its trigger level, 80% of its initial level, in which case investors will be fully exposed to the decline of the lowest performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Sept. 25.

The Cusip number is 40435UXS8.

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