HSBC plans 8% contingent return 10-year callables tied to indexes

By Susanna Moon

Chicago, April 12 – HSBC USA Inc. plans to price callable barrier notes with contingent return due May 3, 2021 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of at least 8% if each underlying index closes at or above the 75% coupon barrier on the observation date for that quarter.

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

The payout at maturity will be par unless either underlying index finishes below its 55% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 25 and settle on April 30.

The Cusip number is 40435FYH4.

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