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

By Jennifer Chiou

New York, Sept. 3 - HSBC Bank USA, NA plans to price annual income opportunity certificates of deposit with minimum annual coupon due Sept. 29, 2014 linked to a basket of stocks, according to a term sheet.

The basket includes Abbott Laboratories, Amgen Inc., General Electric Co., Kimberly-Clark Corp., Medtronic Inc., Nike Inc., Schlumberger Ltd., Target Corp., Walgreen Co. and Yahoo! Inc.

Interest is payable annually and will equal the average of the returns on the basket stocks, subject to a floor of 1%. 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 on Sept. 24 and settle on Sept. 29.

HSBC Securities (USA) Inc. is the agent.

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