HSBC plans 10.55% contingent income barrier autocalls on two stocks

By Susanna Moon

Chicago, Sept. 20 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Oct. 2, 2020 linked to the lesser performing of the common stocks of AT&T Inc. and Verizon Communications Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 9.5% to 10.5% if each stock closes at or above its 78% coupon barrier on the observation date for that month.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.

The payout at maturity will be par unless either stock finishes below its 78% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Sept. 27 and settle on Oct. 2.

The Cusip number is 40435FZ42.

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