HSBC plans annual income opportunity CDs due 2017 tied to 10 stocks

By Toni Weeks

San Diego, July 3 - HSBC Bank USA, NA plans to price annual income opportunity certificates of deposit due July 31, 2017 linked to a basket of stocks, according to a pricing sheet.

The basket includes the common stocks of Barrick Gold Corp., Bristol-Myers Squibb Co., Conagra Foods Inc., Firstenergy Corp., Halliburton Co., Intel Corp., PNC Financial Services Group, Tiffany & Co., Unithealth Group Inc. and Verizon Communications Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of 0%.

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 5.5% 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 CDs (Cusip: 40431GX53) are expected to price on July 26 and settle on July 31.

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

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