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

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – HSBC USA Inc. plans to price callable notes with contingent return due Nov. 9, 2021 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 quarterly coupon at an annual rate of at least 7% if each index closes at or above its 60% coupon barrier level on the observation date for that quarter.

The notes are callable at par plus any semiannual review date beginning Nov. 9, 2017.

The payout at maturity will be par the final coupon unless either index closes below its 50% barrier 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 Nov. 4 and settle on Nov. 9.

The Cusip number is 40433UZU3.

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