HSBC plans seven-year global opportunity CDs linked to index basket

By Angela McDaniels

Tacoma, Wash., June 2 - HSBC Bank USA, NA plans to price 0% global opportunity certificates of deposit with minimum return due June 29, 2017 linked to a basket of equally weighted indexes, according to a term sheet.

The indexes are the Euro Stoxx 50, Hang Seng and S&P 500.

The payout at maturity will be par plus the basket return, subject to a minimum return of 2% to 5% that will be set at pricing.

The final level of each index will be the average of its closing levels on Feb. 19, May 19, Aug. 19 and Nov. 19 of each year.

The CDs will be putable on June 30, 2011, June 29, 2012, June 28, 2013, June 30, 2014 and June 30, 2015. Investors will receive the current market value of the CDs minus a redemption charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and 0.5% in year four. There is no charge in year five.

The CDs (Cusip: 40431GAS8) will price June 23 and settle June 29.

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