HSBC plans income opportunity CDs linked to global industry titans

By Toni Weeks

San Diego, Aug. 3 - HSBC Bank USA, NA plans to price annual income opportunity CDs with auto cap due Aug. 31, 2017 linked to a basket of 12 stocks, according to a term sheet.

The basket includes the common stocks of ABB Ltd., Amgen Inc., Baidu, Inc., Barrick Gold Corp., BP plc, Canon Inc., Duke Energy Corp., Ecopetrol SA, Elan Corp. plc, Grupo Televisa SA, HDFC Bank Ltd., Marvell Technology Group Ltd.

Interest is payable in August of each year 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 6% to 9%. 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: 40431GWV7) are expected to price Aug. 26 and settle Aug. 31.

HSBC Securities (USA) Inc. is the agent.

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