HSBC to sell annual income opportunity CDs linked to stock basket

By Susanna Moon

Chicago, Dec. 1 - HSBC USA Inc. plans to price annual income opportunity certificates of deposit due Dec. 29, 2015 linked to a basket of 20 equally weighted stocks, according to a term sheet.

The underlying companies are Alcoa Inc., Apple Inc., Archer-Daniels-Midland Co., AT&T Inc., Bristol-Myers Squibb Co., Carnival Corp., Chesapeake Energy Corp., Coca-Cola Co., CSX Corp., Excelon Corp., Fedex Corp., Freeport-McMoran Copper & Gold Inc., Goldman Sachs Group, Inc., Intel Corp., Occidental Petroleum Corp., Southern Co., Starbucks Corp., US Bancorp, Verizon Communications Inc. and Wellpoint Inc.

Interest is payable annually and will equal the average of the returns on the basket stocks, subject to a floor of zero. Each stock's return will be capped at 8% to 12%, with the exact cap to be set at pricing, and will have a floor of negative 30%.

The payout at maturity will be par.

The CDs will price on Dec. 23 and settle on Dec. 30.

HSBC Securities (USA) Inc. is the agent.

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