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HSBC to price six-year CDs linked to Dow Jones Industrial Average
By Angela McDaniels
Tacoma, Wash., May 2 - HSBC Bank USA, NA plans to price 0% certificates of deposit with minimum return due May 25, 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 index return and the minimum return, which is expected to be 2% to 4% and will be set at pricing.
The final index level will be the average of its closing levels on Feb. 20, May 20, Aug. 20 and Nov. 20 of each year during the life of the CDs.
The CDs will be putable annually. Investors will receive the current market value of the CDs 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.
The CDs (Cusip: 40431GRZ4) will price May 20 and settle May 25.
HSBC Securities (USA) Inc. is the agent.
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