HSBC plans 5.7% contingent return autocallables tied to Russell, S&P

By Susanna Moon

Chicago, Sept. 21 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due Sept. 28, 2028 linked to the lesser performing of the Russell 2000 index and 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 annualized rate of at least 5.7% if each underlying index closes at or above its 75% coupon barrier on the observation date for that quarter.

The notes will be called at par if each index closes at or above its initial level on any review date after one year.

The payout at maturity will be par unless either index finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Sept. 25 and settle on Sept. 28.

The Cusip number is 40435F3E5.

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