HSBC plans income plus notes tied to stocks with 5.5% potential coupon

By Angela McDaniels

Tacoma, Wash., May 1 – HSBC USA Inc. plans to price income plus notes due May 31, 2022 linked to a basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the common stocks of Apple Inc., Cisco Systems, Inc., General Motors Co., Pfizer Inc. and Philip Morris International Inc.

Interest is payable annually. The interest rate will be 1% plus (a) 4.5% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

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

HSBC Securities (USA) Inc. is the agent.

The notes will price May 26 and settle May 29.

The Cusip number is 40433BQ68.

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