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

By Marisa Wong

Madison, Wis., Aug. 4 – HSBC USA Inc. plans to price income plus notes with minimum coupon due Aug. 30, 2021 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

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

If every underlying stock closes at or above its initial level on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of at least 6%. 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 are expected to price Aug. 25 and settle Aug. 28.

The Cusip number is 40433BKT4.

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