HSBC to price growth opportunity CDs linked to S&P 500 Low Volatility

By Angela McDaniels

Tacoma, Wash., March 2 - HSBC Bank USA, NA plans to price 0% growth opportunity certificates of deposit due April 1, 2019 linked to the S&P 500 Low Volatility index, according to a term sheet.

The payout at maturity will be par plus the index return, subject to a minimum payout of par.

The final level of the index will be the average of its closing levels on June 27, Sept. 27, Dec. 27 and March 27 of each year during the life of the CDs beginning June 27, 2012.

The issuer said it is generally willing to repurchase CDs from depositors at any time. It will pay the early redemption amount, which equals par plus any interest due plus the early redemption fee and less an early withdrawal charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and zero after that. The early redemption fee is the current market value of the CDs minus any interest due and minus the principal amount of the CDs.

The CDs (Cusip: 40431GN21) will price March 27 and settle March 30.

HSBC Securities (USA) Inc. is the agent.

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