HSBC to price autocallable step-up notes on HSBC Vantage5 index

By Marisa Wong

Morgantown, W.Va., Feb. 21 – HSBC USA Inc. plans to price 0% autocallable step-up notes due Feb. 28, 2025 linked to the HSBC Vantage5 Index (USD) Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium of 6% per year if the index closes at or above the applicable call threshold on an annual call observation date. The call threshold will be 102.75% of the initial level for the first observation date, stepping up by 275 basis points each year to a final call threshold of 116.5% of the initial level for the sixth observation date.

The payout at maturity will be par plus any index gain. If the index falls, the payout will be par.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Feb. 23.

The Cusip number is 40435FTA5.

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