HSBC plans autocallable yield notes on iShares Nasdaq Biotech ETF

By Wendy Van Sickle

Columbus, Ohio, Dec. 1 – HSBC USA Inc. plans to price three-year autocallable yield notes linked to the iShares Nasdaq Biotechnology exchange-traded fund, according to an FWP filed with the Securities and Exchange Commission.

The interest rate will be at least 5.5% per year and will be set at pricing. Interest will be payable semiannually.

The notes will be called at par if the fund closes at or above its initial level on any semiannual call observation date.

The payout at maturity will be par unless the fund finishes below its barrier level, 60% of its initial level, in which case investors will receive a number of the fund shares equal to the principal amount of notes divided by the initial price of the fund. Fractional amounts will be paid in cash.

HSBC Securities (USA) Inc. is the agent.

The notes will price and settle in December.

The Cusip number is 40433UEU6.

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