By Marisa Wong
Madison, Wis., June 2 - HSBC USA Inc. priced $107.47 million of 7% STEP Income Securities due June 12, 2015 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Ford stock is greater than or equal to the step level, 107% of the initial share price, the payout at maturity will be par of $10 plus the step payment of $0.151.
If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.
Investors will be fully exposed to any decline in the share price.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Ford Motor Co. (NYSE: F)
|
| Amount: | $107,466,040
|
| Maturity: | June 12, 2015
|
| Coupon: | 7%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price of Ford stock is greater than or equal to step level, par plus 1.51%; if final share price is greater than or equal to initial share price but is less than step level, par; 1% loss for every 1% that final share price is less than initial share price
|
| Initial share price: | $16.52
|
| Step level: | $17.68, 107% of initial share price
|
| Pricing date: | May 29
|
| Settlement date: | June 5
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434C543
|
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