HSBC Bank to sell CDs with minimum return linked to Dow Industrials

By Susanna Moon

Chicago, Feb. 9 - HSBC Bank USA, NA plans to price 0% certificates of deposit with minimum return due Feb. 23, 2015 linked to the Dow Jones Industrial Average, according to a term sheet.

The payout at maturity will be par plus the greater of the index return and a minimum return of 2% to 5%, with the exact floor to be set at pricing.

The final index level used to calculate the index return will be the average of the index's closing levels on Feb. 18, May 18, Aug. 18 and Nov. 18 of each year during the life of the CDs.

The CDs will be putable on Feb. 28, 2011, Feb. 28, 2012, Feb. 28, 2013 and Feb. 28, 2014. The redemption amount will be the market value of the CDs.

The CDs will price Feb. 18 and settle Feb. 23.

HSBC Securities (USA) Inc. is the agent.

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