HSBC plans seven-year annual income notes linked to stock basket

By Susanna Moon

Chicago, Nov. 2 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due Dec. 2, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Amgen Inc., Apple Inc., AT&T Inc., Exelon Corp., Integrated Products, Inc., Monsanto Co., Pfizer Inc., Silver Wheaton Corp. and Wells Fargo & Co.

Interest is payable annually and will equal the average of the performances of the basket stocks, with a minimum coupon of 0.5% to 0.75%.

A stock's performance will be equal to the 7% auto cap rate if its return is greater than or equal to zero. If a stock's return is less than zero, its performance will be the greater of its return and negative 25%.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Nov. 27 and settle on Nov. 30.

The Cusip number is 4042K17L1.

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