HSBC plans auto cap annual income opportunity securities on 12 stocks

By Jennifer Chiou

New York, June 18 - HSBC USA Inc. plans to price annual income opportunity securities with auto cap due July 20, 2015 linked to a basket of 12 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Archer-Daniels-Midland Co., Amazon.com, Inc., Bank of America Corp., Berkshire Hathaway Inc., Exelon Corp., First Solar, Inc., Gilead Sciences Inc., Applied Materials, Inc., Newmont Mining Corp., Pfizer Inc., Verizon Communications Inc. and Waste Management, Inc.

Interest is payable in June or July of each year and will equal the average of the returns on the basket stocks, subject to a floor of 1% and a cap of 6.5%. Each stock will have an auto cap rate of 6.5% and a floor of negative 20%.

The payout at maturity will be par.

The securities will price on June 25 and settle on June 30.

HSBC Securities (USA) Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.