HSBC plans callable notes with contingent return tied to S&P, Russell

By Susanna Moon

Chicago, Sept. 26 – HSBC USA Inc. plans to price callable notes with contingent return due Oct. 15, 2019 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 6.25% if each index closes at or above its 70% coupon barrier level on the observation date for that period.

The notes are callable at par plus any semiannual review date beginning Oct. 11, 2017.

The payout at maturity will be par the final coupon unless either index closes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Oct. 7 and settle on Oct. 13.

The Cusip number is 40433UWW2.

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