HSBC to price contingent coupon autocalls tied to three indexes

By Sarah Lizee

Olympia, Wash., Oct. 28 – HSBC USA Inc. plans to price autocallable securities with contingent coupon and contingent downside due Oct. 27, 2023 linked to the lowest performing of the Euro Stoxx 50 index, 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 pay a contingent coupon at the rate of 7% to 8% per year if each index closes at or above its barrier level, 70% of its initial level, on the calculation day for that quarter.

From April 24, 2020 through and including July 24, 2023, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly calculation day.

If each index’s final level is greater than or equal to its barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst-performing index declines from its initial level.

HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are the agents.

The notes will price on Oct. 30.

The Cusip number is 40435UYU2.

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