HSBC plans to price autocallable growth barrier notes tied to S&P 500

By Wendy Van Sickle

Columbus, Ohio, Feb. 3 – HSBC USA Inc. plans to price 0% autocallable growth barrier notes due March 2, 2020 linked to the S&P 500 index, according to an FWP filed with the Securities and Exchange Commission.

The notes will be automatically called at par of $1,000 plus at least $120 if the index’s closing level on Feb. 27, 2017 is greater than 110% of the initial index level.

If the notes are not called and the index return is greater than zero, the payout at maturity will be par plus an upside participation rate of at least 120% of the index return. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the return is less than negative 25%, investors will suffer a loss proportionate to the index’s decline.

The exact call redemption amount and upside participation rate will be set at pricing.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Feb. 24 and settle on Feb. 29.

The Cusip number is 40433UHJ8.

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