HSBC plans three-year annual income opportunity CDs on global titans

By Jennifer Chiou

New York, June 2 - HSBC Bank USA, NA plans to price annual income opportunity series 6 certificates of deposit with "auto cap" feature due June 28, 2013 linked to a basket of global industry titans stocks, according to a term sheet.

The underlying companies are Apple Inc., Banco Bradesco SA, EnCana Corp., GlaxoSmithKline plc, Gold Fields Ltd., Mechel, Nokia Corp., Potash Corp. of Saskatchewan Inc., Raytheon Co., Taiwan Semiconductor Manufacturing Co. Ltd., Teva Pharmaceutical Industries Ltd. and Unilever NV.

Interest is payable annually and will equal the average of the performances of the basket stocks, with a floor of zero.

If a stock's return is flat or positive, its performance will be fixed at 5% to 8%, with the exact percentage to be set at pricing. If the stock's return is negative, its performance will be the greater of the return and negative 30%.

The CDs are putable on July 29, 2011 and July 30, 2012.

The payout at maturity will be par.

The CDs (Cusip: 40431GAJ8) will price on June 25 and settle on June 30.

HSBC Securities (USA) Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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