HSBC to price autocallable barrier notes linked to two indexes, ETF

By Marisa Wong

Morgantown, W.Va., Oct. 19 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due Oct. 31, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the S&P Midcap 400 ETF trust, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at a rate of at least 8.5% if each underlying closes at or above its coupon trigger, 70% of the initial level, on the observation date for that quarter.

After one year, the notes will be automatically called at par plus the applicable contingent coupon if each underlying closes at or above its initial level on any quarterly observation date.

The payout at maturity will be par plus the final contingent coupon unless any underlying finishes below the 70% barrier level, in which case investors will be fully exposed to the decline of the least performing asset.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price on Oct. 27 and settle on Oct. 31.

The Cusip number is 40433UXX9.

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