HSBC plans five-year autocallables with 7.9% call premium on S&P 500

By Susanna Moon

Chicago, May 25 – HSBC USA Inc. plans to price 0% autocallable securities due June 3, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annual call premium of 7.9% if the index closes at or above the initial level on any quarterly observation date.

If index finishes at or above its initial level, the payout at maturity will be the greater of 39.5% and the index gain.

Investors will receive par if the index falls by up to 15% and will be fully exposed to any losses if the index finishes below the 85% barrier level.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as dealer.

The notes will price on May 31 and settle on June 3.

The Cusip number is 40434V871.

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