HSBC Bank to price certificates of deposit linked to Dow Industrials

By Angela McDaniels

Tacoma, Wash., April 30 - HSBC Bank USA, NA plans to price 0% certificates of deposit with minimum return due May 26, 2016 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 the minimum return, which is expected to be 2% to 5% and will be set at pricing.

The final index level will be the average of its closing levels on Feb. 21, May 21, Aug. 21 and Nov. 21 of each year.

The CDs will be putable on May 31, 2011, May 31, 2012, May 31, 2013, May 30, 2014 and May 29, 2015 at their current market value minus an early redemption charge of 3% in year one, 2% in year two and 1% in year three. There is no charge in years four and five.

The CDs will price May 21 and settle May 26.

HSBC Securities (USA) Inc. is the agent. The distributor is Advisors Asset Management, Inc.

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