HSBC to price autocallable notes with contingent coupon on indexes

By Sarah Lizee

Olympia, Wash., Aug. 26 – HSBC USA Inc. plans to price autocallable notes with contingent coupon and contingent downside due Aug. 29, 2023 linked to the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8% to 9% if each index closes above 75% of its initial level on the related quarterly observation date.

The notes will be called at par plus the contingent coupon if each component closes at or above the initial level on any annual call date beginning Feb. 24, 2020.

The payout at maturity will be par unless either index finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worst performing component.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 29.

The Cusip number is 40435UXC3.

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