HSBC plans to price CDs linked to Dow Jones - UBS Commodity index

By Angela McDaniels

Tacoma, Wash., Nov. 2 - HSBC Bank USA, NA plans to price 0% certificates of deposit due Nov. 24, 2015 linked to the Dow Jones - UBS Commodity index, according to a term sheet.

The payout at maturity will be par plus any index gain. Investors will receive at least par.

The final index level used to calculate the index return will be the average of the index's closing levels on Feb. 19, May 19, Aug. 19 and Nov. 19 of each year during the life of the CDs.

The CDs will be putable on Nov. 29, 2010, Nov. 29, 2011, Nov. 29, 2012, Nov. 29, 2013 and Nov. 28, 2014. The redemption amount will be the then-current market value of the CDs minus an early redemption charge of 3% in year one, 2% in year two and 1% in year three. There is no charge in years four through six.

The CDs will price Nov. 19 and settle Nov. 24.

HSBC Securities (USA) Inc. is the agent.

© 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.