HSBC Bank to price seven-year CDs linked to Dow Jones Industrials

By Jennifer Chiou

New York, Nov. 1 - HSBC Bank USA, NA plans to price 0% certificates of deposit due Nov. 24, 2017 linked to the Dow Jones Industrial Average, according to a term sheet.

The payout at maturity will be par plus the greater of the average index level and par. The average index level will be measured using the closing values on the 19th day of each February, May, August and November in each year prior to maturity.

The CDs will be putable on Nov. 30, 2011, Nov. 30, 2012, Nov. 29, 2013, Nov. 28, 2014, Nov. 30, 2015, and Nov. 30, 2016 at their current market value minus an early redemption charge of 3% in year one, 2% in year two and 1% in year three. There is no charge in years four, five and six.

The CDs (Cusip: 40431GGP8) will price on Nov. 19 and settle on Nov. 24.

HSBC Securities (USA) Inc. is the agent.

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