HSBC plans to price Global Opportunity CDs linked to three indexes

By Toni Weeks

San Diego, Feb. 1 - HSBC Bank USA, NA plans to price 0% Global Opportunity certificates of deposit due Feb. 28, 2019 linked to a basket of three indexes, according to a term sheet.

The basket includes equal weights of the Dow Jones industrial average, the Euro Stoxx 50 index and the TWSE index.

The payout at maturity will be par plus the average of the basket indexes' returns, subject to a minimum payout of par.

The final level of each index will be the average of its closing levels on May 23, Aug. 23, Nov. 23 and Feb. 23 of each year during the life of the CDs beginning May 23, 2012.

The issuer said it is generally willing to repurchase CDs from depositors at any time. It will pay the early redemption amount, which equals par plus any interest due plus the early redemption fee and less an early withdrawal charge of 3% in year one, 2% in year two, 1% in year three and zero after that. The early redemption fee, which could be positive or negative, is the current market value of the CDs minus any interest due and minus the principal amount of the CDs.

The trade date for the CDs (Cusip: 40431GK24) is Feb. 22, the index set date is Feb. 23, and the settlement date is Feb. 28.

HSBC Securities (USA) Inc. is the agent.

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