HSBC plans dual directional barrier notes tied to EAFE ETF, Stoxx

By Sarah Lizee

Olympia, Wash., Jan. 16 – HSBC USA Inc. plans to price 0% dual directional barrier notes due Feb. 6, 2023 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the Euro Stoxx 50 index, 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 175% of the lesser-performing underlying’s return.

If the final level of either underlying is less than or equal to its initial level but neither underlying finishes below its trigger value, 75% of its initial level, the payout will be par plus the absolute value of the lesser-performing underlying’s return.

If either underlying finishes below its trigger value, investors will lose 1% for every 1% that the lesser-performing underlying declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Jan. 31.

The Cusip number is 40435UY65.

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