HSBC plans income plus notes on stocks with 1% minimum coupon

By Toni Weeks

San Luis Obispo, Calif., April 1 – HSBC USA Inc. plans to price income plus notes due April 29, 2022 linked to a basket of common stocks, according to an FWP with the Securities and Exchange Commission.

The underlying companies are Apple Inc., Cisco Systems, Inc., General Motors Co., Pfizer Inc. and Philip Morris International Inc.

If every underlying stock closes at or above its initial level on an annual coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of at least 5%. The exact performance-based rate will be set at pricing. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price April 24 and settle April 29.

The Cusip number is 40433BK64.

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