HSBC plans six-year annual income opportunity CDs linked to U.S. Industry Titans stock basket

By Jennifer Chiou

New York, Nov. 2 - HSBC Bank USA, NA plans to price annual income opportunity series 5 certificates of deposit with minimum annual coupon due Nov. 30, 2015 linked to a basket of stocks, according to a term sheet.

The basket includes Biogen Idec Inc., eBay Inc., Hess Corp., Lowe's Cos., Inc., Nucor Corp., PepsiCo, Inc., U.S. Bancorp, Viacom Inc. (class B shares), Waste Management, Inc. and Yum! Brands, Inc.

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

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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