HSBC to sell contingent return callables on biotech, technology ETFs

New York, Aug. 1 – HSBC USA Inc. plans to price 9% to 10% callable notes with contingent return due Aug. 18, 2021 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

Every six months, the notes will pay a contingent coupon at an annual rate of 9% to 10% if each underlying closes at or above its 70% coupon trigger level on the observation date for that semiannual period. The exact coupon will be set at pricing.

Beginning Feb. 13, 2019, HSBC may call the notes semiannually at par.

The payout at maturity will be par plus the final contingent coupon unless either underlying finishes below its 70% barrier level, in which case investors will be fully exposed to the decline of the worse-performing underlying.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 24 and settle on Aug. 31.

The Cusip number is 40435FR58.

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