HSBC plans autocallable contingent income barrier notes on indexes

By Sarah Lizee

Olympia, Wash., July 18 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due July 29, 2024 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the Dow Jones industrial average, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 9.1% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that period.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after one year.

The payout at maturity will be par plus the final coupon, if any, unless any index finishes more than 40% below its initial level, in which case investors will be fully exposed to the decline of the lowest performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price July 24.

The Cusip is 40435USN5.

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