HSBC to price annual income opportunity notes linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Aug. 7 - HSBC USA, Inc. plans to price annual income opportunity notes due Aug. 17, 2017 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Amgen Inc., Applied Materials, Inc., Exelon Corp., General Electric Co., Intel Corp., Lorillard, Inc., PepsiCo, Inc., Pfizer Inc., Procter & Gamble Co. and Time Warner Cable Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum interest rate of 0.5% per year.

A stock's performance will be equal to the auto cap rate if its return is greater than or equal to zero. The auto cap rate is expected to be at least 4.75% and will be set at pricing. 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 plus the last coupon payment.

The notes will price Aug. 10 and settle Aug. 17.

HSBC Securities (USA) Inc. is the agent.

The Cusip number is 4042K1T52.

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