HSBC will price barrier digital return notes linked to Dow, Russell

By Devika Patel

Knoxville, Tenn., Dec. 21 – HSBC USA Inc. plans to price 0% barrier digital return notes due March 5, 2020 linked to the lesser performing of the Dow Jones Industrial Average and the Russell 2000 index, according to an FWP filed with the Securities and Exchange Commission.

A trigger event will occur if either index closes below 70% of its respective initial level during the life of the notes.

If no trigger event occurs, the payout at maturity will be par plus the digital return, which is expected to be at least 10% and will be set at pricing.

If a trigger event occurs and each index finishes above its initial level, the payout at maturity will be par.

Othewise, investors will lose 1% for each 1% decline in the worst performing index.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435UDW1) are expected to price on Jan. 31 and settle on Feb. 5.

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