HSBC plans Income Plus CDs due 2024 on stocks with 5% potential coupon

By Marisa Wong

Morgantown, W.Va., Feb. 15 – HSBC Bank USA, NA plans to price Income Plus certificates of deposit due Feb. 27, 2024 linked to the common stocks of Amazon.com, Inc., Bank of America Corp., Eli Lilly & Co., Procter & Gamble Co. and Verizon Communications Inc., according to a term sheet.

Interest will be payable annually. The interest rate will be 1.3% plus (a) the performance-based annual coupon, 3.7%, if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

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

HSBC Securities (USA) Inc. is the agent. Advisors Asset Managment is distributor.

The CDs will price Feb. 22.

The Cusip number is 40434Y3V7.

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