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

By Toni Weeks

San Luis Obispo, Calif., June 4 - HSBC USA Inc. plans to price income plus notes with minimum coupon due June 29, 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 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 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: 40432XGF2) will price June 24 and settle June 27.

HSBC Securities (USA) Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.