HSBC plans to price CDs with minimum return linked to Dow Industrials

By Angela McDaniels

Tacoma, Wash., Sept. 3 - HSBC Bank USA, NA plans to price 0% certificates of deposit with minimum return due Sept. 22, 2015 linked to the Dow Jones Industrial Average, according to a term sheet.

The payout at maturity will be par plus the greater of the index return and the minimum return, which is expected to be 1% to 6% and will be set at pricing.

The final index level used to calculate the index return will be the average of the index's closing levels on March 17, June 17, Sept. 17 and Dec. 17 of each year during the life of the notes.

The CDs will be putable on Sept. 30, 2010, Sept. 30, 2011, Sept. 28, 2012, Sept. 30, 2013 and Sept. 30, 2014. The redemption amount will be the then-current market value of the CDs minus an early redemption charge of 3% in year one, 2% in year two and 1% in year three. There is no charge in years four through six.

The CDs will price Sept. 17 and settle Sept. 22.

HSBC Securities (USA) Inc. is the agent.

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