HSBC plans contingent income barrier autocalls on Stoxx Banks, Dow

By Sarah Lizee

Olympia, Wash., Aug. 23 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 30, 2029 linked to the least performing of the Euro Stoxx Banks index and Dow Jones industrial average, 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 11.75% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after one year.

The payout at maturity will be par plus the final coupon unless any index closes below the 75% coupon barrier level. If any index falls by more than 25% but not by more than 40%, the payout will be par. If any index falls by more than 40%, investors will be fully exposed to the losses of the worst-performing index.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 27.

The Cusip number is 40435UUW2.

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