HSBC plans income plus notes tied to stocks with 0.5% minimum coupon

By Susanna Moon

Chicago, June 8 - HSBC Bank USA, NA plans to price income plus notes with minimum coupon due June 27, 2019 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are AT&T Inc., Intel Corp., Kraft Foods Inc., Pfizer Inc. and Reynolds American Inc.

If every underlying stock closes above its initial level on the valuation date, the coupon will be the minimum rate of 0.5% plus a performance-based coupon of at least 10.75%. The exact rate will be set at pricing.

Otherwise, the notes will pay the minimum coupon of 0.5%.

Interest will be payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will price on June 22 and settle on June 27.

The Cusip number is 4042K1S95.

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