HSBC plans annual income opportunity notes tied to 10 industry titans

By Marisa Wong

Madison, Wis., Feb. 21 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due March 2019 linked to a basket of 10 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Altria Group, Inc., Bristol-Myers Squibb Co., CME Group Inc., Cisco Systems, Inc., Kinder Morgan Energy Partners, LP, Lockheed Martin Corp., Maxim Integrated Products, Inc., McDonald's Corp., Monsanto Co. and Wal-Mart Stores, Inc.

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

A stock's performance will be equal to the auto cap rate, 5.75%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 25%.

The payout at maturity will be par.

The notes (Cusip: 40432XBJ9) will price and settle in March.

HSBC Securities (USA) Inc. is the agent.

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