HSBC plans income plus notes on stock basket with 1% minimum coupon

By Susanna Moon

Chicago, March 3 - HSBC USA Inc. plans to price income plus notes with minimum annual coupon due March 26, 2021 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group, Inc., McDonald's Corp. and Altria Group, Inc.

If every underlying stock closes at or above its initial level on an annual coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of at least 8%. The exact performance-based rate will be set at pricing. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price on March 21 and settle on March 26.

The Cusip number is 40432XUR0.

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