HSBC to price contingent upside participation CDs linked to S&P 500 via Citigroup

By Angela McDaniels

Tacoma, Wash., May 6 - HSBC Bank USA, NA plans to price three-year 0% contingent upside participation market-linked certificates of deposit linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc. is the underwriter.

If the index's closing level remains at or below the barrier - 135% to140% of the initial level -throughout the life of the CDs, the payout at maturity will be par plus any index gain. If the index ever closes above the barrier, the payout will be par plus a fixed payment of 3% to 5%.

The exact barrier and fixed payment will be set at pricing.

The CDs will be putable with a redemption amount equal to the market value of the CDs minus an early redemption fee.

The CDs will price in May.

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