HSBC plans 0.3%-5% seven-year Rate Builder CDs linked to 10 stocks

By Susanna Moon

Chicago, May 10 – HSBC Bank USA, NA plans to price Rate Builder certificates of deposit due May 30, 2023 linked to a basket of 10 stocks, according to a term sheet.

The underlying companies are Bristol-Myers Squibb Co., Chevron Corp., International Business Machines Corp., Eli Lilly & Co., McDonald's Corp., Merck & Co, Inc., Procter & Gamble Co., Verizon Communications Inc., Wal-Mart Stores, Inc. and Exxon Mobil Corp.

The annual interest rate will be a minimum of 0.3%, with the rate stepping up to between 1% and 5% if six or more basket stocks that gain for that interest payment period, with the rate to range based on the number of stocks that appreciate for that period. If the number is five or fewer, the coupon will be the minimum rate.

The payout at maturity will be par.

The estimated initial value is between $900.00 and $940.00 per CD.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price on May 24.

The Cusip number is 40434AV63.

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