HSBC plans income plus notes on five stocks with 7% potential coupon

By Wendy Van Sickle

Columbus, Ohio, March 29 – HSBC USA Inc. plans to price income plus notes due May 1, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Cisco Systems, Inc., International Business Machines Corp., Merck & Co., Inc., Procter & Gamble Co. and Verizon Communications, Inc.

The interest rate will be 1% plus (a) a% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise. Interest is payable annually.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40433UKE5) will price on April 26 and settle on April 29.

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