HSBC plans five-year annual income opportunity CDs linked to U.S. Industry Titans stock basket

By Jennifer Chiou

New York, Oct. 2 - HSBC Bank USA, NA plans to price annual income opportunity series 5 certificates of deposit with minimum annual coupon due Oct. 30, 2014 linked to a basket of stocks, according to a term sheet.

The basket includes Biogen Idec Inc., eBay Inc., Hess Corp., Lowe's Cos., Inc., Nucor Corp., PepsiCo, Inc., U.S. Bancorp, Viacom Inc. (class B shares), Waste Management, Inc. and Yum! Brands, Inc.

Interest is payable annually and will equal the average of the returns on the basket stocks. Each stock's return will be capped at 8% to 11%, with the exact cap to be set at pricing.

The payout at maturity will be par plus a minimum coupon rate of 0.5%.

The CDs will price on Oct. 27 and settle on Oct. 30.

HSBC Securities (USA) Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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