HSBC plans contingent income autocallables linked to three stocks

By Angela McDaniels

Tacoma, Wash., July 9 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 1, 2022 linked to the least performing of the common stocks of Goldman Sachs Group, Inc., Walt Disney Co., and Intel Corp., according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if each stock closes at or above its trigger level, 60% of its initial price, on the observation date for that month. The contingent coupon rate is expected to be at least 11.15% per year and will be set at pricing.

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

The payout at maturity will be par plus the final coupon unless any stock finishes more than 40% below its initial level, in which case investors will be exposed to the decline of the least-performing stock from its initial share price.

HSBC Securities (USA) Inc. is the agent.

The notes will price July 26.

The Cusip is 40435USM7.

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