HSBC plans to price contingent income callable securities on indexes

By Devika Patel

Knoxville, Tenn., Aug. 15 – HSBC USA Inc. plans to price contingent income callable securities due Nov. 21, 2018 linked to the least performing of the Dow Jones Industrial Average, the Russell 2000 index and the S&P 500 index, according to an FWP filed with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 7.15% if each index closes at or above its downside threshold level, 65% of its initial index level, on the determination date for that quarter. The exact contingent coupon rate will be set at pricing.

The notes are callable at par on any quarterly determination date other than the final one.

If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40434V129) will price on Aug. 16 and settle on Aug. 19.

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