HSBC plans callable notes with contingent return tied to index, fund

By Susanna Moon

Chicago, Nov. 11 – HSBC USA Inc. plans to price callable notes with contingent return due Nov. 9, 2021 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 10½% to 11½% if each component closes at or above its 60% coupon barrier level on the observation date for that period.

The notes are callable at par plus any semiannual review date beginning May 30, 2017.

The payout at maturity will be par unless either component closes below its 60% barrier level, in which case investors will be fully exposed to any losses of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Nov. 18 and settle on Nov. 28.

The Cusip number is 40433UYC4.

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