HSBC to price autocallable barrier notes on Stoxx, iShares MSCI EM

New York, April 3 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return and step-down call threshold feature due May 16, 2022 linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium of 14% to 15% per year if each underlying closes at or above its call level on any annual observation date. The exact premium will be set at pricing.

The call level will be 100% of the initial level on the first observation date, 97.5% on the second, 95% on the third and 92.5% on the fourth. The observation dates are annually beginning May 13, 2019.

The payout at maturity will be par plus a contingent payment of 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the lesser performing asset.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price on April 20 and settle on April 27.

The Cusip number is 40435FWY9.

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