HSBC plans Income Plus CDs tied to stocks with 0.75% minimum coupon

By Susanna Moon

Chicago, May 9 – HSBC Bank USA, NA plans to price Income Plus certificates of deposit due May 27, 2021 linked to a basket of five common stocks, according to a term sheet.

The underlying companies are Bristol-Myers Squibb Co., Ford Motor Co., McDonald’s Corp., Philip Morris International Inc. and Wal-Mart Stores, Inc.

If each underlying stock closes at or above its initial level on a coupon valuation date, the coupon will be the minimum rate of 0.75% plus a performance-based coupon of 2.25% for a maximum rate of 3%. Otherwise, the notes will pay the minimum coupon of 0.75%. Interest will be payable annually.

The payout at maturity will be par.

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

The CDs will price on May 24.

The Cusip number is 40434AU64.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.