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

By Marisa Wong

Madison, Wis., Nov. 29 - HSBC Bank USA, NA plans to price 0% certificates of deposit due Dec. 28, 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 final return and a minimum return of 0.5% to 1.5% that will be set at pricing. The final return is equal to (a) the average index level minus the initial level divided by (b) the initial level. The average index level will be measured using the closing values on the 22nd day of each March, June, September and December in each year prior to maturity.

The CDs will be putable on Dec. 30, 2011, Dec. 31, 2012, Dec. 31, 2013, Dec. 31, 2014, Dec. 31, 2015 and Dec. 30, 2016 at their current market value minus an early redemption charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and 0.5% in year four. There is no charge in years five and six.

The CDs (Cusip: 40431GHV4) will price on Dec. 22 and settle on Dec. 28.

HSBC Securities (USA) Inc. is the agent.

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