HSBC plans income notes due 2020 tied to basket of 20 stocks

By Marisa Wong

Madison, Wis., June 2 - HSBC USA Inc. plans to price income notes due June 2020 linked to a basket of 20 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are AbbVie Inc., Amazon.com, Inc., BHP Billiton Ltd., The Walt Disney Co., Ensco plc, Eaton Corp. plc, Ford Motor Co., Facebook, Inc., Fortinet, Inc., Helmerich & Payne, Inc., JPMorgan Chase & Co., Kraft Foods Group, Inc., Och-Ziff Capital Management Group LLC, Philip Morris International Inc., PPL Corp., Spectra Energy Corp, Sempra Energy, Texas Instruments Inc., Under Armour, Inc. and Verizon Communications Inc.

The notes will pay interest at a minimum rate of 1% per year. If, however, at least 14 of the 20 basket stocks have not decreased in value from the pricing date as measured on a coupon determination date, the notes will pay interest at a maximum rate of 5.5% to 6.5% per year. The exact maximum rate will be set at pricing.

The payout at maturity will be par plus the final coupon.

BofA Merrill Lynch is the agent.

The notes will price and settle in June.

© 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.