HSBC plans to price callable notes linked to biotech ETF, S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 8 – HSBC USA Inc. plans to price callable notes with contingent return due Aug. 30, 2022 linked to the lesser performing of the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Every six months, the notes will pay a contingent coupon if each underlier closes at or above its barrier value, 65% of its initial level, on the observation date for that semiannual period. The contingent coupon rate is expected to be at least 8.8% per year and will be set at pricing.

The notes are callable at par semiannually.

If the notes are not called, the payout at maturity will be par unless the lesser-performing underlier finishes below its barrier value, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price Aug. 23.

The Cusip number is 40435UTK0.

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