HSBC to price growth opportunity CDs with averaging linked to S&P 500

By Toni Weeks

San Luis Obispo, Calif., April 9 - HSBC Bank USA, NA plans to price 0% growth opportunity certificates of deposit due April 28, 2021 linked to the S&P 500 index, according to a term sheet.

The final index level will be the average of the index's closing levels on the 28 quarterly observation dates over the term of the CDs.

The payout at maturity will be par plus the greater of the index return and the 2% minimum return.

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. The early redemption fee is the current market value of the CDs minus any interest due and minus the principal amount of the CDs.

HSBC Securities (USA) Inc. is the agent.

The CDs will price April 23 and settle April 28.

The Cusip number is 40434AJF7.

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