HSBC to price autocallable growth barrier notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., May 3 – HSBC USA Inc. plans to price 0% autocallable growth barrier notes due May 31, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called if the index’s closing level on May 26, 2017 is greater than 110% of the initial index level. The call redemption amount will be par plus the product of $1,000 multiplied by 10% multiplied by the upside participation rate, which is expected to be at least 1.2 times and will be set at pricing.

If the notes are not called and the index return is greater than zero, the payout at maturity will be par plus the index return multiplied by the upside participation rate. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the return is less than negative 25%, investors will suffer a loss proportionate to the index’s decline.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price May 25.

The Cusip number is 40433UMK9.

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