HSBC plans annual income opportunity notes on 'industry titans' stocks

By Toni Weeks

San Diego, Aug. 1 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due Sept. 3, 2019 linked to a basket of 10 common stocks, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes stocks from the following "industry titans" issuers: Barrick Gold Corp., Bristol-Myers Squibb Co., ConAgra Foods, Inc., FirstEnergy Corp., Halliburton Co., Intel Corp., PNC Financial Services Group, Inc., Tiffany & Co., Unitedhealth Group Inc. and Verizon Communications Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum coupon of 1%.

A stock's performance will be equal to the 7% auto cap rate if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 25%.

The payout at maturity will be par.

The notes (Cusip: 4042K12R3) are expected to price Aug. 28 and settle Aug. 31.

HSBC Securities (USA) Inc. is the agent.

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