HSBC plans to price Global Opportunity CDs linked to three indexes

By Angela McDaniels

Tacoma, Wash., May 4 - HSBC Bank USA, NA plans to price 0% Global Opportunity certificates of deposit due May 30, 2019 linked to a basket of indexes, according to a term sheet.

The basket includes equal weights of the Dow Jones industrial average, the Euro Stoxx 50 index and the TWSE index.

The payout at maturity will be par plus the average of the basket indexes' returns, subject to a minimum return of 0.75% to 2% that will be set at pricing.

The final level of each index will be the average of its closing levels on Feb. 24, May 24, Aug. 24 and Nov. 24 of each year during the life of the CDs beginning Aug. 24.

The issuer said it is generally willing to repurchase CDs from depositors at any time. It will pay the early redemption amount, which equals par plus any interest due plus the early redemption fee and less an early withdrawal charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and zero after that. The early redemption fee is the current market value of the CDs minus any interest due and minus the principal amount of the CDs.

The trade date for the CDs (Cusip: 40431GS75) is May 23, the index fixing date is May 24, and the settlement date is May 30.

HSBC Securities (USA) Inc. is the agent.

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