HSBC eyes contingent income barrier autocalls on three indexes

By Sarah Lizee

Olympia, Wash., Oct. 21 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due July 29, 2021 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 6.25% to 7.25% if each index closes at or above its 70% coupon barrier on the observation date for that month.

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.

The payout at maturity will be par unless any index finishes below its 70% 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 Oct. 24.

The Cusip number is 40435UB86.

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