HSBC plans autocallable barrier notes linked to S&P 500, biotech ETF

By Angela McDaniels

Tacoma, Wash., Nov. 1 – HSBC USA Inc. plans to price 0% autocallable barrier notes with step-up premium due Dec. 4, 2023 linked to the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium if each underlying closes at or above its call level, 90% of its initial level, on any annual observation date. The call premium is expected to be at least 12.8% per year and will be set at pricing.

If the final return of the lesser-performing underlying is less than negative 10% – and therefore the notes are not called – but greater than or equal to negative 30%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing underlying’s final level is less than its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price Nov. 22.

The Cusip number is 40435UD68.

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