HSBC to price contingent income autocallables linked to three stocks

By Angela McDaniels

Tacoma, Wash., July 18 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due July 26, 2021 linked to the least performing of the common stocks of CVS Health Corp., Apple Inc. and salesforce.com, inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each stock closes at or above its barrier price, 70% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 18.4% per year and will be set at pricing.

Beginning Jan. 22, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly observation date.

The payout at maturity will be par plus the final coupon unless any stock finishes more than 40% below its initial share price, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by that stock’s initial share price.

HSBC Securities (USA) Inc. is the agent.

The notes will price July 19.

The Cusip is 40436B436.

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