HSBC plans callable contingent income barrier notes on indexes, ETF

By Emma Trincal

New York, June 1 – HSBC USA Inc. plans to issue callable contingent income barrier notes due Sept. 5, 2023 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the VanEck Vectors Gold Miners ETF, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 21% if each underlying asset closes at or above its trigger level, 65% of its initial level, on the observation date for that period.

The notes will be callable at par on any quarterly call observation date after six months.

The payout at maturity will be par plus the final coupon unless any asset closes below its 65% trigger level on any day during the life of the notes or if all indexes finish above their initial levels. Otherwise, investors will be fully exposed to the decline of the lowest performing asset from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes were expected to price on May 31 and to settle on June 3.

The Cusip number is 40439J6J9.

The fee is 0.75%.

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