HSBC plans six-year annual income opportunity CDs linked to Global Industry Titans stock basket

By Jennifer Chiou

New York, Nov. 2 - HSBC Bank USA, NA plans to price annual income opportunity series 4 certificates of deposit due Nov. 30, 2015 linked to a basket of stocks, according to a term sheet.

The basket includes ABB Ltd., BP plc, Cameco Corp., Cemex SAB de CV, China Mobile Ltd., Corning Inc., Credit Suisse Group, CSX Corp., Petroleo Brasileiro and SAP AG.

Interest is payable annually and will equal the average of the returns on the basket stocks, subject to a floor of zero. Each stock's return will be capped at 9% to 13%, with the exact cap to be set at pricing, and will have a floor of negative 30%.

The payout at maturity will be par.

The CDs will price on Nov. 24 and settle on Nov. 30.

HSBC Securities (USA) Inc. is the agent.

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