HSBC eyes autocallable barrier notes with step-up premium on indexes

By Sarah Lizee

Olympia, Wash., April 9 – HSBC USA Inc. plans to price 0% autocallable barrier notes with step-up premium and contingent return feature due May 3, 2022 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if each index closes at or above its initial level on any annual observation date after one year. The call premium is 8.5% per year.

The payout will be par plus 10% unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on April 30.

The Cusip number is 40435ULH5.

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