HSBC plans trigger absolute return step notes linked to MSCI EAFE ETF

By Devika Patel

Knoxville, Tenn., Dec. 22 – HSBC USA Inc. plans to price 0% trigger absolute return step securities due Dec. 30, 2022 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund finishes at or above its initial level, the payout at maturity will be par of $10 plus the greater of the gain and the step return of 25% to 29%. The exact step return will be set at pricing.

If the fund falls by up to the 75% downside threshold, the payout will be par plus the absolute value of the return.

Otherwise, investors will lose 1% for each 1% decline of the fund from its initial level.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

The notes (Cusip: 40435J794) are expected to price on Dec. 26 and settle on Dec. 29.

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