HSBC to price growth opportunity CDs linked to S&P 500 Low Volatility

By Marisa Wong

Madison, Wis., Nov. 9 - HSBC Bank USA, NA plans to price growth opportunity certificates of deposit due Dec. 2, 2019 linked to the S&P 500 Low Volatility index, according to a term sheet.

The payout at maturity will be par plus the index return, subject to a minimum payout of par.

The final level of the index will be the average of its closing levels on the 28 quarterly observation dates during the life of the notes.

The issuer said it is generally willing to repurchase CDs from depositors at any time. It will pay the early redemption amount, which equals par plus any interest due plus the early redemption fee and less an early withdrawal charge of 3% in year one, 2% in year two, 1% in year three and zero after that. The early redemption fee is the current market value of the CDs minus any interest due and minus the principal amount of the CDs.

The CDs (Cusip: 40431G4A4) will price Nov. 26 and settle Nov. 29.

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

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