HSBC to price callable notes with contingent return linked to indexes

By Angela McDaniels

Tacoma, Wash., July 25 – HSBC USA Inc. plans to price callable notes with contingent return due Aug. 2, 2021 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon trigger, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 6% per year and will be set at pricing.

The notes are callable at par quarterly.

If the notes are not called, the payout at maturity will be par unless the return of the least-performing index is less than negative 30%, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price July 30.

The Cusip number is 40435UUQ5.

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