HSBC to price seven-year autocallable CDs linked to HSBC Vantage5

By Marisa Wong

Morgantown, W.Va., May 16 – HSBC Bank USA, NA plans to price 0% autocallable certificates of deposit due May 29, 2025 linked to the HSBC Vantage5 Index (USD) Excess Return, according to a term sheet.

The CDs will be automatically called at par plus a call premium of 6% per year if the index closes at or above the call threshold on any of six annual call observation dates. The call threshold is 102.25% of the initial level for the first call date, stepping up by 225 basis points on each subsequent call date to a final call threshold of 113.5% of the initial level for the sixth call date.

If the index return is greater than or equal to zero, the payout at maturity will be par plus the index return. If the index return is less than zero, the payout will be par.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price May 23.

The Cusip number is 40434YYW1.

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