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

By Marisa Wong

Madison, Wis., Dec. 8 – HSBC USA Inc. plans to price income plus notes due Dec. 23, 2021 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Apple Inc., Eli Lilly and Co., McDonald’s Corp. and Verizon Communications 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 7%. 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.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 18 and settle on Dec. 23.

The Cusip number is 40433BVE5.

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