HSBC Bank to price barrier rebate CDs linked to Russell 2000 index

By Jennifer Chiou

New York, July 30 - HSBC Bank USA, NA plans to price 0% barrier rebate certificates of deposit due Aug. 23, 2013 linked to the Russell 2000 index, according to a term sheet.

If the closing level of the index remains at or below the barrier - 175% of the initial level - throughout the life of the CDs, the payout at maturity will be par plus any positive index return.

If the index breaches the barrier level, the payout will be par plus the rebate return, which is expected to be 5% to 8%.

The CDs will price on Aug. 20 and settle on Aug. 25

HSBC Securities (USA) Inc. is the agent.

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