HSBC amends maturity of autocallable barrier notes on Stoxx, EM ETF

By Sarah Lizee

Olympia, Wash., Nov. 8 – HSBC USA Inc. amended the maturity date and observation dates of its upcoming autocallable barrier notes with contingent return and step-down call threshold feature linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The maturity date was changed to Dec. 14, 2022 from Nov. 9, 2022.

The notes will be called at par plus a call premium of 13% to 14% per year if each underlying closes at or above its call level on any annual observation date. The exact premium will be set at pricing.

The call level will be 100% of the initial level on the first observation date, 97.5% on the second, 95% on the third and 92.5% on the fourth. The observation dates are now Dec. 4, 2019, Dec. 2, 2020, Dec. 8, 2021 and Dec. 7, 2022, from Nov. 6, 2019, Nov. 4, 2020, Nov. 3, 2021 and Nov. 2, 2022 previously.

The payout at maturity will be par plus a contingent payment of 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the lesser performing asset.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price on Nov. 21 and settle on Nov. 29.

The Cusip number is 40435F6J1.

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