HSBC plans 10-year callable contingent income notes linked to S&P 500

By Susanna Moon

Chicago, April 27 – HSBC USA Inc. plans to price callable contingent income securities due May 3, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 7.5% if the index closes at or above the 75% coupon barrier on a coupon observation date for that quarter.

The notes are callable at par on any quarterly redemption date after one year.

The payout at maturity will be par unless the index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 28 and settle on May 3.

The Cusip number is 40433U3M6.

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