HSBC plans annual income opportunity notes with floor linked to stocks

By Susanna Moon

Chicago, Aug. 1 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due Aug. 30, 2019 linked to a basket of five industry titans, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Eli Lilly and Co., Lockheed Martin Corp., Procter & Gamble Co. and Verizon Communications Inc.

If every reference stock return is positive on an annual valuation date, the coupon will be the performance-based rate of at least 2.5% plus a minimum rate of 1.5%.

Interest is payable annually, with a minimum coupon of 1.5%.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Aug. 28 and settle on Aug. 31.

The Cusip number is 4042K12T9.

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