HSBC plans Income Plus CDs tied to stocks with 4.75% potential coupon

By Angela McDaniels

Tacoma, Wash., May 8 – HSBC Bank USA, NA plans to price Income Plus certificates of deposit due May 27, 2022 linked to a basket of common stocks, according to a term sheet.

The basket is comprised of the common stocks of Apple Inc., Boeing Co., Ford Motor Co., Eli Lilly & Co. and Verizon Communications Inc.

Interest will be payable annually. The interest rate will be 0.75% plus (a) the performance-based annual coupon, 4%, if each basket stock closes at or above its initial share price on the valuation date or (b) 0% otherwise.

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

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price May 24.

The Cusip number is 40434YHV2.

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