HSBC plans callable contingent income barrier notes on three indexes

By Sarah Lizee

Olympia, Wash., July 18 – HSBC USA Inc. plans to price callable contingent income barrier notes due July 30, 2029 linked to the least performing of the Russell 2000 index, S&P 500 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 8.85% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.

The notes are callable quarterly at par starting July 27, 2020.

The payout at maturity will be par unless any index finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 25.

The Cusip number is 40435USP0.

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