HSBC plans to price income notes linked to basket of 20 common stocks

By Wendy Van Sickle

Columbus, Ohio, Feb. 12 – HSBC USA Inc. plans to price income notes due February 2022 linked to a basket of 20 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Apple Inc., Amazon.com, Inc., BlackRock, Inc., Celgene Corp., Delta Air Lines, Inc., the Walt Disney Co., Facebook, Inc., Ford Motor Co., Gilead Sciences, Inc., General Motors Co., Intel Corp., LinkedIn Corp., Altria Group, Inc., Merck & Co., Inc., Netflix, Inc., Nucor Corp., NXP Semiconductors NV, Whirlpool Corp. and Exxon Mobil Corp.

Interest is payable annually. If at least 14 of the 20 stocks close at or above their respective initial share prices on the relevant valuation date, the interest rate for that year will be 4.5% to 5.5%. Otherwise, it will be 0.5% for that year. The exact maximum interest rate will be set at pricing.

The payout at maturity will be par of $10 plus the last interest payment.

The notes are expected to price in February and settle in March.

Bank of America Merrill Lynch is the agent.

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