HSBC plans to price contingent income callable securities on indexes

By Devika Patel

Knoxville, Tenn., June 20 – HSBC USA Inc. plans to price contingent income callable securities due June 27, 2019 linked to the lesser performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to an FWP filed with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 7.35% if each index closes at or above its coupon barrier level, 65% of its initial index level, each trading day during that that quarter.

The notes are callable at par plus any coupon on any quarterly determination date beginning Sept. 25, 2017.

If each index finishes at or above its downside threshold level, 65% of its initial index level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 40435FAJ6) will price on June 23 and settle on June 28.

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