HSBC to price annual income opportunity securities linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., April 1 - HSBC USA Inc. plans to price annual income opportunity securities with sticky cap due April 29, 2016 linked to a basket of 10 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Ashland Inc., AT&T Inc., Chevron Corp., Coca-Cola Co., Fedex Corp., Ford Motor Co., Gilead Sciences Inc., Oracle Corp., Sempra Energy and State Street Corp.

Interest is payable in April of each year and will equal the average of the returns on the basket stocks, subject to a floor of zero and a sticky cap of 7% to 9% that will be set at pricing. If the return for any basket stock is greater than or equal to the sticky cap, the return for that stock will be set at the sticky cap for that coupon valuation date and each succeeding valuation date, regardless of the stock's actual performance.

The payout at maturity will be par.

The securities will price April 26 and settle April 29.

HSBC Securities (USA) Inc. is the agent.

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