HSBC plans five-year trigger absolute return step notes tied to S&P 500

By Sarah Lizee

Olympia, Wash., Dec. 10 – HSBC USA Inc. plans to price 0% trigger absolute return step securities due Dec. 29, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above its initial level, also called the step barrier, the payout at maturity will be par of $10 plus the greater of the gain and the step return of 29.4% to 33.4%.

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

Otherwise, investors will be fully exposed to any losses.

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

The notes will price on Dec. 26 and settle on Dec. 31.

The Cusip number is 40436A677.

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