HSBC plans income plus notes on five stocks with 1% minimum coupon

By Marisa Wong

Madison, Wis., Jan. 4 - HSBC USA Inc. plans to price income plus notes with minimum coupon due Jan. 30, 2020 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Apple Inc., eBay Inc., Altria Group, Inc., PepsiCo, Inc. and Wal-Mart Stores, Inc.

If every underlying stock closes 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 4.5%. 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.

The notes (Cusip: 40432X6R7) will price on Jan. 25 and settle on Jan. 30.

HSBC Securities (USA) Inc. is the agent.

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