HSBC plans autocallable notes with contingent return tied to indexes

By Marisa Wong

Morgantown, W.Va., Sept. 8 – HSBC USA Inc. plans to price autocallable notes with contingent return due Sept. 30, 2019 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 8.5% to 9% if each component closes at or above the initial level on any annual call date beginning Sept. 26, 2016.

The payout at maturity will be par plus a 10% contingent return payment unless either index finishes below its 70% 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 Sept. 25 and settle on Sept. 30.

The Cusip number is 40433B6M5.

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