HSBC plans contingent coupon buffered securities linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 12 – HSBC USA Inc. plans to price contingent coupon buffered securities with trigger upside participation due Aug. 31, 2021 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index’s closing level remains at or above the coupon trigger, 85% of the initial index level, on each day during a quarter, the notes will pay a contingent coupon for that quarter at the rate of 4.9% to 5.1% per year. The exact contingent coupon rate will be set at pricing. If the index closes below the coupon trigger on any trading day, investors will receive the contingent coupon calculated up to and including that trading day and no further contingent coupon payments will be paid on the notes.

The payout at maturity will be par unless the index closes below the coupon trigger during the life of the notes, in which case the payout per $1,000 principal amount of notes will be $1,000 multiplied by the sum of one plus the index return plus 15%. This amount will be greater than par if the index return is greater than negative 15%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price Aug. 26.

The Cusip number is 40433UTM8.

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