HSBC plans five-year annual income opportunity CDs tied to 10 stocks

By Jennifer Chiou

New York, Nov. 2 - HSBC USA Inc. plans to price annual income opportunity CDs with auto cap due Nov. 29, 2016 linked to a basket of 10 stocks, according to a pricing sheet.

The basket includes the common stocks of Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels Midland Co., AT&T Inc., Barrick Gold Corp., General Mills, Inc., Halliburton Co., Intel Corp. and Mattel, Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.

If a basket stock's return is zero or positive, its performance will be fixed at 5.5% to 7.5%. The exact auto cap rate will be determined at pricing. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 40431GA66) are expect to price on Nov. 23 and settle on Nov. 29.

HSBC Securities (USA) Inc. will be the agent.

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