HSBC plans six-year annual income opportunity CDs linked to Global Industry Titans stock basket

By Jennifer Chiou

New York, Dec. 31 - HSBC Bank USA, NA plans to price annual income opportunity series 5 certificates of deposit with an auto cap feature due Jan. 29, 2016 linked to a basket of stocks, according to a term sheet.

The basket includes AstraZeneca plc, Barrick Gold Corp., Cameco Corp., China Life Insurance Co., Ltd., Honda Motor Co., Ltd., Kraft Foods Inc., Research in Motion, SAP AG, Sony Corp., Starbucks Corp., Teva Pharmaceutical Industries Ltd. and Vodafone Group plc.

Interest is payable annually and will equal the average of the returns on the basket stocks, subject to a floor of zero. If the valuation price of a stock is greater than the initial level, that stock's return will be the auto cap rate of 9% to 13%, with the exact cap to be set at pricing.

The payout at maturity will be par.

The CDs will price on Jan. 26 and settle on Jan. 29.

HSBC Securities (USA) Inc. is the agent.

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