HSBC plans contingent income barrier autocalls on index, ETF

By Sarah Lizee

Olympia, Wash., Aug. 24 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Sept. 2, 2025 linked to the least performing of the S&P 500 index and the Market Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission

Each month, the notes will pay a contingent coupon at an annual rate of 8.88% if each asset closes at or above its coupon barrier, 60% of its initial level, on the observation date for that month.

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

The payout at maturity will be par plus the final coupon unless either asset closes below the trigger, 60% of the initial level, in which case investors will be fully exposed to the losses of the worse-performing asset.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 26.

The Cusip number is 40438CTS0.

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