HSBC plans trigger autocallable optimization notes tied to Euro Stoxx

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – HSBC USA Inc. plans to price 0% trigger autocallable optimization securities due Dec. 31, 2020 linked to the Euro Stoxx 50 index, according to an FWP filed with the Securities and Exchange Commission.

Beginning in December 2016, the notes will be called at par of $10 plus a call return of 8% per year if the index closes at or above the initial level on any quarterly observation date.

If the notes are not called and the index finishes at or above the trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial level. The trigger level will be 58% to 65% of the initial index level. The exact level will be set at pricing.

HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is acting as agent.

The notes will price on Dec. 29 and settle on Dec. 31.

The Cusip number is 40434K313.

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