HSBC plans 10% contingent return barrier callables tied to two funds

By Susanna Moon

Chicago, Jan. 3 – HSBC USA Inc. plans to price callable barrier notes with contingent return due Jan. 26, 2021 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 10% if each fund closes at or above its 70% coupon barrier on the observation date for that quarter.

The notes are callable at par on any semiannual review date after six months.

The payout at maturity will be par plus the contingent coupon unless either fund finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on Jan. 19 and settle on Jan. 26.

The Cusip number is 40435FPW1.

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