HSBC plans to price income plus notes linked to basket of five stocks

By Angela McDaniels

Tacoma, Wash., June 6 - HSBC USA Inc. plans to price income plus notes due June 2018 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Altria Group, Inc., Eli Lilly & Co., International Business Machines Corp., Lockheed Martin Corp. and McDonald's Corp.

Interest will be payable annually. The interest rate will be 5.25% for the first year. After that, the interest rate will be 10.25% if every stock closes at or above its initial share price on the coupon valuation date. Otherwise, the coupon will be 1.25%.

The payout at maturity will be par.

The notes (Cusip: 4042K1JT1) will price and settle in June.

HSBC Securities (USA) Inc. is the agent.

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