HSBC to sell annual income market-linked CDs based on 20 stocks

By Susanna Moon

Chicago, March 19 - HSBC Bank USA, NA plans to price annual income market-linked certificates of deposit due March 29, 2016 based of the performance of a basket of stocks, according to a term sheet.

The underlying companies are Johnson Controls Inc., Caterpillar Inc., Comcast Corp., General Electric Co., Archer-Daniels-Midland Co., Corning Inc., Philip Morris International Inc., Intel Corp., Baker Hughes Inc., Dow Chemical Co., ConocoPhillips, Nucor Corp., MetLife, Inc., AT&T Inc., Wells Fargo & Co., Verizon Communications Inc., Bristol-Myers Squibb Co., American Electric Power Inc., Merck & Co. and Exelon Corp.

Interest is payable annually and will equal the average of the returns on the basket stocks, with a floor of zero. The maximum rate per reference security will be fixed at 9% to 11%, with the exact cap to be set at pricing, and each stock will have a floor of negative 30%.

The payout at maturity will be par.

The CDs will price on March 25 and settle on March 30.

Morgan Stanley Smith Barney is the distributor.

© 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.