HSBC plans annual income opportunity CDs due 2019 on industry titans

By Marisa Wong

Madison, Wis., May 4 - HSBC Bank USA, NA plans to price annual income opportunity CDs with auto cap due May 31, 2019 linked to a basket of stocks, according to a pricing sheet.

The basket includes the common stocks of American Electric Power Co., AT&T Inc., Biogen Idec Inc., Kimberly-Clark Corp., Lockheed Martin Corp., Maxim Integrated Products, Mosaic Co., Pfizer Inc., Ralph Lauren Corp. and Silver Wheaton Corp.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of 0.5%.

If a basket stock's return is zero or positive, its performance will equal the auto cap rate, which is expected to be at least 5.25% and will be set 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 securities may be redeemed early, subject to an early withdrawal charge.

The CDs (Cusip: 40431GS42) are expected to price on May 25 and settle on May 31.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.