HSBC plans to price five-year Rate Builder CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., June 13 – HSBC Bank USA, NA plans to price Rate Builder certificates of deposit due June 29, 2021 linked to a basket of 10 stocks, according to a term sheet.

The basket includes the common stocks of Bristol-Myers Squibb Co., Eli Lilly & Co., Exxon Mobil Corp., Intel Corp., International Business Machines Corp., McDonald's Corp., Pfizer Inc., Procter & Gamble Co., Verizon Communications Inc. and Wal-Mart Stores, Inc.

Interest will be payable annually. The interest rate will be 3% if all 10 stocks close at or above their initial share prices on the valuation date for that year, 2.4% if nine stocks close at or above their initial share prices, 1.8% if eight stocks close at or above their initial share prices, 1.2% if seven stocks close at or above their initial share prices, 0.6% if six stocks close at or above their initial share prices or 0.25% if five or fewer stocks close at or above their initial share prices.

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

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price June 24.

The Cusip number is 40434AX79.

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