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

By Susanna Moon

Chicago, Dec. 3 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due Dec. 26, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Barrick Gold Corp., Intel Corp., Bristol-Myers Squibb Co., PNC Financial Services Group, Inc., ConAgra Foods, Inc., Tiffany & Co., FirstEnergy Corp., Unitedhealth Group Inc., Halliburton Co. and Verizon Communications Inc.

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

A stock's performance will be equal to the auto cap rate of 7% 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 30%.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Dec. 20 and settle on Dec. 26.

The Cusip number is 40432X4R9.

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