HSBC plans contingent return autocallables linked to oil ETF, S&P 500

By Tali Rackner

Norfolk, Va., Nov. 4 – HSBC USA Inc. plans to price 0% autocallable notes with contingent return due Dec. 2, 2019 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration and Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called if each underlier closes at or above its initial level on Nov. 25, 2016, Nov. 27, 2017, Nov. 26, 2018, or Nov. 26, 2019. The redemption amount would be par plus a call premium that is expected to be 19% to 22% per year and will be set at pricing.

If the notes are not called and the final return of the lesser-performing underlier is less than zero but greater than or equal to negative 30%, the payout at maturity will be par plus 10%.

If the final return of the lesser-performing underlier is less than negative 30%, investors will be fully exposed to that underlier’s decline.

HSBC Securities (USA) Inc. is the agent.

The notes will price Nov. 20 and settle Nov. 30.

The Cusip number is 40433UCD6.

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