HSBC plans income plus stock-linked notes with 4% potential coupon

By Angela McDaniels

Tacoma, Wash., Aug. 31 - HSBC USA Inc. plans to price income plus notes due Sept. 30, 2019 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the common stocks of Altria Group, Inc., Eli Lilly & Co., Lockheed Martin Corp., Procter & Gamble Co. and Verizon Communications Inc.

Interest will be payable annually. The interest rate will be 1.5% plus (a) the performance-based annual coupon if each basket stock closes at or above its initial share price on the valuation date or (b) 0% otherwise. The performance-based annual coupon is expected to be at least 2.5% and will be set at pricing.

The payout at maturity will be par plus the last coupon payment.

The notes will price Sept. 25 and settle Sept. 28.

HSBC Securities (USA) Inc. is the agent.

The Cusip number is 4042K14H3.

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