By Marisa Wong
Madison, Wis., June 22 – HSBC USA Inc. priced $8.17 million of 0% Strategic Accelerated Redemption Securities due July 1, 2016 linked to a basket of Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley shares, according to a 424B2 filing with the Securities and Exchange Commission.
Citigroup was given an initial weight of 33.34%, and JPMorgan and Morgan Stanley were each given an initial weight of 33.33%.
The notes will be called at par of $10 plus a call premium of 12.5% per year if the basket closes at or above its initial level on Dec. 18, March 18, 2016 or June 24, 2016.
If the notes are not called, the payout at maturity will be par minus 1% for every 1% that the basket finishes below its initial level.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying stocks: | Citigroup Inc. (NYSE: C), JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS)
|
| Amount: | $8,173,720
|
| Maturity: | July 1, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par minus 1% for every 1% basket decline
|
| Call: | At par plus a call premium of 12.5% per year if basket closes at or above its initial level on Dec. 18, March 18, 2016 or June 24, 2016
|
| Pricing date: | June 18
|
| Settlement date: | June 26
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 40434E804
|
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