HSBC plans income plus CDs on five stocks with 1% minimum coupon

By Marisa Wong

Madison, Wis., Dec. 6 - HSBC Bank USA, NA plans to price income plus certificates of deposit due Dec. 28, 2020 linked to a basket of common stocks, according to an FWP with the Securities and Exchange Commission.

The underlying companies are Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group, Inc., McDonald's Corp. and Altria Group, Inc.

If every underlying stock closes above its initial level on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of 3%. Otherwise, the CDs will pay the minimum coupon of 1%. Interest will be payable annually.

The payout at maturity will be par.

The CDs (Cusip: 40434AGN3) will price on Dec. 20 and settle on Dec. 26.

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

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