HSBC plans five-year autocallable step-up notes tied to Russell 2000

By Wendy Van Sickle

Columbus, Ohio, Feb. 2 – HSBC USA Inc. plans to price 0% autocallable market-linked step up notes due February 2021 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus a call premium if the index closes at or above the initial index level on any annual observation date. The call premium is expected to be 7.5% to 8.5% per year and will be set at pricing.

If the notes are not called and the final index level is greater than the step-up value, 140% of the initial index level, the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 40%.

If the final index level is less than the initial level but greater than or equal to the 85% threshold value, the payout will be par. Otherwise, investors will be exposed to the loss.

BofA Merrill Lynch is the agent.

The notes will price in February and settle in March.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.