HSBC plans seven-year annual income opportunity CDs on stock basket

By Toni Weeks

San Diego, March 2 - HSBC Bank USA, NA plans to price annual income opportunity CDs with auto cap due April 1, 2019 linked to a basket of ten stocks, according to a pricing sheet.

The basket includes the common stocks of AstraZeneca plc, Encana Corp., General Mills, Inc., Gerdau SA, Home Depot, Inc., ICICI Bank Ltd., Randgold Resources Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., Unilever NV and Vodafone Group plc.

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 a coupon of at least 6.25%. 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: 40431GN39) are expect to price March 27 and settle March 30.

HSBC Securities (USA) Inc. will be the agent.

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