HSBC plans contingent income autocallables linked to three stocks

By Angela McDaniels

Tacoma, Wash., June 20 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due June 28, 2021 linked to the least performing of the common stocks of Travelers Cos., Inc., International Business Machines Corp. and Exxon Mobil Corp., 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 trigger level, 70% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 12.08% per year and will be set at pricing.

Beginning Dec. 24, 2019, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any coupon observation date.

The payout at maturity will be par plus the final coupon unless any stock finishes more than 30% below its initial level, 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 June 21.

The Cusip is 40436B519.

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