HSBC plans annual income opportunity notes tied to 10 industry titans

By Marisa Wong

Madison, Wis., Jan. 4 - HSBC USA Inc. plans to price annual income opportunity notes due Jan. 31, 2020 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes Cliffs Natural Resources Inc., Consolidated Edison, Inc., Darden Restaurants, Inc., Exelon Corp., Lorillard, Inc., Mattel, Inc., Nvidia Corp., Southern Co., Verizon Communications Inc. and Waste Management, Inc.

Interest is payable annually and will equal the greater of the average of the performances of the basket stocks and the minimum coupon of 0.5% to 0.75%. The exact minimum coupon will be set at pricing.

A stock's performance will be equal to the auto cap rate, 7%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 25%.

The payout at maturity will be par.

The notes (Cusip: 40432X6U0) will price on Jan. 28 and settle on Jan. 31.

HSBC Securities (USA) Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.