HSBC plans callable notes with contingent return tied to two indexes

By Marisa Wong

Morgantown, W.Va., April 7 – HSBC USA Inc. plans to price callable notes with contingent return due April 13, 2021 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at a rate of 7% per year if each index closes at or above 65% of its initial level on the observation date that month.

After one year, the notes will be callable quarterly.

The payout at maturity will be par plus the final contingent payment unless either index finishes below its 65% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 8.

The Cusip number is 40433ULJ3.

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