HSBC to price barrier enhanced participation notes linked to ETFs

By Angela McDaniels

Tacoma, Wash., Nov. 6 – HSBC USA Inc. plans to price 0% barrier enhanced participation notes due May 24, 2021 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the return of each ETF is greater than zero, the payout at maturity will be par plus at least 192% of the lesser-performing ETF’s return. The exact upside participation rate will be set at pricing. Investors will receive par if the lesser-performing ETF falls by up to 40% and will be fully exposed to losses from the initial share price if the lesser-performing ETF falls by more than 40%.

HSBC Securities (USA) Inc. is the agent.

The notes will price Nov. 17.

The Cusip number is 40435FLN5.

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