HSBC plans 10-year contingent income barrier notes linked to S&P 500

New York, Oct. 1 – HSBC USA Inc. plans to price contingent income barrier notes due Oct. 8, 2024 linked to the S&P 500 index, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a fixed quarterly coupon at an annualized rate of 6% for the first five years. For the remaining five years, the quarterly coupon will be contingent, payable at an annualized rate of 6% if the index closes at or above the 70% coupon barrier level on the determination date for that quarter.

If the index finishes at or above the 70% trigger level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses.

The estimated initial value of the notes is expected to be between $920 and $1,000 per $1,000 principal amount.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Oct. 3 and settle on Oct. 8.

The Cusip number is 40433BPE2.

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