HSBC plans Income Plus CDs tied to stocks with 5% potential coupon

By Sarah Lizee

Olympia, Wash., Nov. 21 – HSBC Bank USA, NA plans to price Income Plus certificates of deposit due Nov. 29, 2023 linked to the common stocks of Boeing Co., Cisco Systems, Inc., McDonald’s Corp., Pfizer Inc. and Waste Management, Inc., according to a term sheet.

Interest will be payable annually. The interest rate will be 1.75% plus (a) the performance-based annual coupon, 3.25%, if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

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 Nov. 26.

The Cusip number is 40434YU88.

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