HSBC to price autocallable accumulating income CDs linked to stocks

By Angela McDaniels

Tacoma, Wash., May 8 – HSBC Bank USA, NA plans to price 0% autocallable accumulating income certificates of deposit due May 30, 2024 linked to the common stocks of Apple Inc., Boeing Co., Eli Lilly & Co., Ford Motor Co. and Verizon Communications Inc., according to a term sheet.

An automatic call event occurs if each stock closes at or above its initial share price on any annual observation date. If the CDs are called, investors will receive par plus a call premium of 5% per year.

If the CDs are not called, the payout at maturity will be par plus 3.5%, which equals a return of 0.5% per year.

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

The CDs will price May 24.

The Cusip number is 40434YJE8.

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