HSBC to price callable notes with contingent return tied to two ETFs

By Sarah Lizee

Olympia, Wash., July 1 – HSBC USA Inc. plans to price callable notes with contingent return due July 11, 2022 linked to the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 18.2% if each fund closes at or above the 70% coupon trigger level on the related observation date.

HSBC may call the notes every six months on or after July 8, 2020.

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

HSBC Securities (USA) Inc. is the agent.

The notes will price on July 3.

The Cusip number is 40435USL9.

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