HSBC plans callable contingent income barrier notes on S&P 500, Stoxx Banks

By Wendy Van Sickle

Columbus, Ohio, Feb. 21 – HSBC USA Inc. plans to price callable contingent income barrier notes due Feb. 28, 2030 linked to the least performing of the S&P 500 index and Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 11% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.

The notes are callable quarterly at par.

The payout at maturity will be par unless any either finishes below its 60% trigger 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 on Feb. 25.

The Cusip number is 40435U6T6.

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