HSBC to price annual income opportunity notes linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Aug. 8 - HSBC USA, Inc. plans to price annual income opportunity notes with auto cap due Aug. 31, 2020 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Consolidated Edison, Inc., Darden Restaurants, Inc., Exelon Corp., Goldcorp Inc., Lorillard, Inc., Mattel, Inc., Nvidia Corp., Southern Co., Verizon Communications Inc. and Waste Management, Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum interest rate of 0.75% to 1.25% per year. The exact minimum interest rate will be set at pricing.

A stock's performance will be 8% if its return is greater than or equal to zero. If a stock's return is less than zero, its performance will be the greater of its return and negative 15%.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent.

The notes will price Aug. 26 and settle Aug. 29.

The Cusip number is 40432XJZ5.

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