HSBC to price annual income opportunity CDs with minimum coupon linked to U.S. stock basket

By Angela McDaniels

Tacoma, Wash., June 10 - HSBC Bank USA, NA plans to price annual income opportunity certificates of deposit with minimum annual coupon due June 30, 2014 linked to a basket of stocks, according to a term sheet.

The basket includes Amazon.com Inc., ConocoPhillips, Google Inc., Hewlett-Packard Co., Home Depot, Inc., Intel Corp., JPMorgan Chase & Co., Merck & Co., Inc., UnitedHealth Group Inc. and Walt Disney Co.

Interest is payable in June of each year and will equal the greater of 1% and the average of the returns on the basket stocks. Each stock's return will be capped at 9% to 12%, with the exact cap to be set at pricing.

The payout at maturity will be par.

The CDs will price June 25 and settle June 30.

HSBC Securities (USA) Inc. is the agent.

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