HSBC plans annual income opportunity notes due 2015 tied to 10 stocks

By Angela McDaniels

Tacoma, Wash., Nov. 28 - HSBC USA Inc. plans to price annual income opportunity notes with auto cap due Dec. 29, 2015 linked to a basket of 10 common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Mills, Inc., Halliburton Co., Intel Corp. and Mattel, Inc.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum interest rate of 0%.

A stock's performance will be equal to the auto cap rate if its return is zero or positive. The auto cap rate is expected to be 7% to 9% and will be set at pricing. If a stock's return is negative, its performance will be the greater of its return and negative 30%.

The payout at maturity will be par.

The notes (Cusip: 4042K1TE3) will price Dec. 23 and settle Dec. 29.

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.