HSBC plans seven-year annual income opportunity CDs on 10 stocks

By Toni Weeks

San Diego, March 2 - HSBC Bank USA, NA plans to price annual income opportunity CDs with auto cap due March 29, 2019 linked to a basket of ten stocks, according to a pricing sheet.

The basket includes the common stocks of Amgen Inc., Applied Materials, Inc., Exelon Corp., General Electric Co., Intel Corp., Lorillard, Inc., PepsiCo, Inc., Pfizer Inc., Procter & Gamble Co. and Time Warner Cable Inc.

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

If a basket stock's return is zero or positive, its performance will be fixed at a coupon of at least 6%. The exact auto cap rate will be determined at pricing. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 40431GM89) are expect to price March 26 and settle March 29.

HSBC Securities (USA) Inc. will be the agent.

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