HSBC plans Income Plus CDs tied to stocks with 8% potential coupon

By Angela McDaniels

Tacoma, Wash., April 11 – HSBC Bank USA, NA plans to price Income Plus certificates of deposit due April 28, 2023 linked to a basket of common stocks, according to a term sheet.

The basket includes the common stocks of Bristol-Myers Squibb Co., Ford Motor Co., McDonald’s Corp., Philip Morris International Inc. and Wal-Mart Stores, Inc.

Interest will be payable annually. The interest rate will be 0.25% plus (a) the performance-based annual coupon, 7.75%, if each basket stock closes at or above its initial share price on the valuation date or (b) 0% otherwise.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price April 25.

The Cusip number is 40434AS83.

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