HSBC to price contingent income barrier autocallable linked to indexes

By Angela McDaniels

Tacoma, Wash., Dec. 2 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Sept. 13, 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 barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 5.5% per year and will be set at pricing.

Beginning June 10, 2020, the notes will be called at par if each index closes at or above its initial level on any coupon observation date.

If the return of each index is greater than or equal to negative 30%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index declines from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price Dec. 6.

The Cusip number is 40435UM76.

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