HSBC plans income plus notes on five stocks with 6% potential coupon

By Devika Patel

Knoxville, Tenn., Feb. 26 – HSBC USA Inc. plans to price income plus notes due March 31, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Apple Inc., Bristol-Myers Squibb Co., Ford Motor Co., Philip Morris International Inc. and Wal-Mart Stores, Inc.

The interest rate will be 1% plus (a) 5% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise. Interest is payable annually.

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

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40433UHW9) will price on March 28 and settle on March 31.

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