HSBC to sell annual income opportunity CDs linked to global titans

By Susanna Moon

Chicago, March 2 - HSBC Bank USA, NA plans to price annual income opportunity series 5 certificates of deposit due March 28, 2013 based on the performance of a basket of stocks, according to a term sheet.

The underlying companies are AstraZeneca plc, Research In Motion Ltd., Barrick Gold Corp., Cameco Corp., Sony Corp., China Life Insurance Co. Ltd., Starbucks Corp., Honda Motor Co., Ltd., Teva Pharmaceutical Industries Ltd., Kraft Foods Inc. and Vodafone Group plc.

Interest is payable annually and will equal the average of the returns on the basket stocks, with a floor of zero. Each stock's return will be capped at 5% to 8%, with the exact cap to be set at pricing, and will have a floor of negative 30%.

The CDs will be putable on April 29, 2011 and April 30, 2012. Investors will receive the current market value minus an early redemption charge.

The payout at maturity will be par.

The CDs will price on March 26 and settle on March 31.

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