HSBC plans seven-year annual income opportunity CDs on 12 stocks

By Jennifer Chiou

New York, Sept. 7 - HSBC USA Bank, NA plans to price annual income opportunity CDs with auto cap due Oct. 2, 2018 linked to a basket of 12 stocks, according to a pricing sheet.

The basket includes the common stocks of Alpha Natural Resources, AT&T, El Paso Corp., Ford Motor Co., Freeport-McMoRan Copper & Gold, Gap Inc., Las Vegas Sands Corp., Nvidia Corp., Pfizer Inc., Salesforce.com Inc., Time Warner Inc. and Xerox Corp.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.

If a basket stock's return is zero or positive, its performance will be fixed at 6% to 9%. The exact auto cap rate will be determined at pricing. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 40431GYM5) will price on Sept. 27 and settle on Sept. 30.

HSBC Securities (USA) Inc. is the agent.

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