HSBC plans to price contingent income barrier autocalls on Russell, S&P

By Sarah Lizee

Olympia, Wash., Aug. 24 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Nov. 30, 2021 linked to the least performing of the S&P 500 index and the Russell 2000 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 8% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.

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 after six months.

The payout at maturity will be par plus the final coupon unless either index closes below the trigger, 75% of the initial level, in which case investors will be fully exposed to the losses of the worse-performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 26.

The Cusip number is 40438CRT0.

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