HSBC plans callable notes with contingent return on S&P 500, oil ETF

By Marisa Wong

Morgantown, W.Va., Dec. 6 – HSBC USA Inc. plans to price callable notes with contingent return due Dec. 14, 2020 linked to the lesser performing of the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Every six months, the notes will pay a contingent coupon at an annual rate of 6.25% to 6.75% if each underlying closes at or above its 60% barrier level on the observation date for that semiannual period.

Beginning June 14, 2018, the notes will be callable semiannually at par.

The payout at maturity will be par plus the final contingent coupon unless either underlying finishes below its barrier level, in which case investors will be fully exposed to the decline of the worse-performing underlying.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 7.

The Cusip number is 40435FNX1.

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