HSBC eyes autocallable barrier notes with step-up premium on index, ETF

By Sarah Lizee

Olympia, Wash., Aug. 21 – HSBC USA Inc. plans to price 0% autocallable barrier notes with step-up premium due Aug. 30, 2023 linked to the lesser performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if each asset closes at or above 90% of its initial level on any annual observation date after one year. The call premium is 11% per year.

The payout will be par unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 23.

The Cusip number is 40435UTF1.

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