HSBC to price autocallable target income CDs linked to five stocks

By Angela McDaniels

Tacoma, Wash., Oct. 16 – HSBC Bank USA, NA plans to price autocallable target income certificates of deposit due Oct. 30, 2024 linked to the common stocks of Altria Group Inc., Bristol-Myers Squibb Co., Ford Motor Co., HP Inc. and Verizon Communications Inc., according to a term sheet.

An automatic call event will occur if each stock closes at or above its initial share price on an annual observation date.

If an automatic call event does not occur on an annual observation date, the CDs will pay a 0.5% coupon that year. If an automatic call event occurs, investors will not receive a coupon. Instead, they 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 the final coupon.

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

The CDs will price Oct. 25.

The Cusip number is 40434YPZ4.

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