HSBC plans to sell trigger callable contingent yield notes on indexes

By Devika Patel

Knoxville, Tenn., Sept. 14 – HSBC USA Inc. intends to price trigger callable contingent yield notes due Sept. 21, 2020 with daily coupon observation linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 8% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be callable at par on any coupon payment date, other than the final one, beginning Dec. 15, 2017.

The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 60% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing index from its initial level.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes (Cusip: 40435G220) will price on Sept. 15 and settle on Sept. 21.

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