HSBC plans annual income opportunity CDs linked to global titans

By Susanna Moon

Chicago, Dec. 11 - HSBC Bank USA, NA plans to price annual income opportunity series 4 certificates of deposit due Dec. 31, 2012 linked to a basket of stocks, according to a term sheet.

The underlying companies are ABB Ltd., BP plc, Cameco Corp., Cemex SAB de CV, China Mobile Ltd., Corning Inc., Credit Suisse Group, CSX Corp., Petroleo Brasileiro and SAP AG.

Interest is payable annually and will equal the average of the returns on the basket stocks, with a floor of zero. Each stock's return will be capped at 5% to 8%, with the exact cap to be set at pricing, and will have a floor of negative 30%.

The payout at maturity will be par.

The CDs will price on Dec. 28 and settle on Dec. 31.

HSBC Securities (USA) Inc. is the agent.

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