HSBC plans contingent income autocallables linked to three indexes

By Susanna Moon

Chicago, July 22 – HSBC USA Inc. plans to price contingent income autocallable securities due Aug. 4, 2022 linked to the worst performing of the Nikkei 225 index, the Russell 2000 index and the Euro Stoxx 50 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 at least 9% if each index closes at or above the 75% barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above the initial price on any of the first 27 determination dates.

The payout at maturity will be par plus the final coupon unless any index finishes below the 55% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on July 31 and settle on Aug. 5.

The Cusip number is 40434E713.

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