HSBC plans autocallable step-up notes on HSBC Vantage5 index

By Sarah Lizee

Olympia, Wash., Oct. 10 – HSBC USA Inc. plans to price 0% autocallable step-up notes due Nov. 9, 2023 linked to the HSBC Vantage5 Index (USD) Excess Return, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium of 8% per year if the index closes at or above the applicable call threshold on an annual call observation date. The call threshold will be 101.5% of the initial level for the first observation date, stepping up by 300 basis points each year to a final call threshold of 106% of the initial level for the fourth observation date.

The payout at maturity will be par plus any index gain. If the index falls, the payout will be par.

HSBC Securities (USA) Inc. is the underwriter.

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

The Cusip number is 40435F3W5.

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