HSBC plans income plus notes on stocks with 1% minimum coupon

By Jennifer Chiou

New York, Feb. 3 – HSBC USA Inc. plans to price income plus notes due Feb. 25, 2022 linked to a basket of common stocks, according to an FWP with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Apple Inc., Ford Motor Co., Kraft Foods Group Inc. and Microsoft Corp.

If every underlying stock closes at or above its initial level on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of at least 5%. The exact performance-based rate will be set at pricing. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.

The payout at maturity will be par.

The notes (Cusip: 40433BZF8) will price on Feb. 20 and settle on Feb. 25.

HSBC Securities (USA) Inc. is the agent.

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