HSBC to sell income opportunity CDs linked to U.S. Titans basket

By Susanna Moon

Chicago, Nov. 13 - HSBC Bank USA, NA plans to price annual income opportunity series 5 U.S. Industry Titans certificates of deposit with minimum annual coupon due Nov. 30, 2014 linked to a basket of stocks, according to a term sheet.

The underlying stocks are 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, with a floor of 0.5%. Each stock's return will be capped at 8% to 11%, 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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