HSBC plans to price six-year Stars linked to S&P 500 via BofA Merrill

By Wendy Van Sickle

Columbus, Ohio, May 5 – HSBC USA Inc. plans to price 0% Strategic Accelerated Redemption Securities due May 2022 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 10.8% to 10.9% if the index closes at or above its initial level on any of six annual review dates. The exact call premium will be set at pricing.

The payout at maturity will be par unless the index falls, in which case investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in May.

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