HSBC intends to sell dual directional buffered notes on S&P, EAFE ETF

By Devika Patel

Knoxville, Tenn., Sept. 30 – HSBC USA Inc. plans to price 0% dual directional buffered notes due Oct. 18, 2021 linked to the lesser performing of the S&P 500 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the final level of each underlying is greater than its initial level, the payout at maturity will be par plus at least 1.02 times the return of the lesser-performing underlying. The exact participation rate will be set at pricing.

If the final level of the lesser-performing underlying is equal to its initial level or less than its initial level by up to 15%, the payout will be par plus the absolute value of the lesser-performing underlying’s return.

If the final level of either underlying is less than its initial level by more than 15%, investors will lose 1% for every 1% decline beyond 15%.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435UYP3) are expected to price on Oct. 10 and settle on Oct. 16.

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