HSBC plans contingent return barrier autocallables tied to index, fund

By Susanna Moon

Chicago, Aug. 11 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due Aug. 25, 2021 linked to the least performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus an annual call premium of 13.5% to 14.5% if each component closes at or above its call level on any annual review date after one year.

The redemption level will be 100% of the initial level on the first observation date, stepping down 97.5% of the of the initial level on the second observation date, to 95% of the initial level on the third observation date and 92.5% of the initial level on the fourth observation date.

The payout at maturity will be par plus 10% unless either component finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 18 and settle on Aug. 25.

The Cusip number is 40435FCV7.

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