HSBC to price barrier uncapped participation notes tied to basket

By Sarah Lizee

Olympia, Wash., Nov. 6 – HSBC USA Inc. plans to price 0% barrier uncapped participation notes due Dec. 5, 2023 linked to a basket of three indexes and an exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% Euro Stoxx 50 index with a 20% weight and the iShares MSCI Emerging Markets ETF with a 20% weight.

The payout at maturity will be par plus at least 1.39 times any gain in the basket. The exact participation rate will be set at pricing.

Investors will receive par if the basket falls by up to 40% and will lose 1% for every 1% decline if it falls beyond the barrier.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435F7K7) will price on Nov. 30.

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