By Marisa Wong
Madison, Wis., June 15 – HSBC USA Inc. priced $58.3 million of 7.5% STEP Income Securities due June 24, 2016 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the final price of Ford stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment of 3.31%. The step level is 107.5% of the initial share price.
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.
If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Ford Motor Co. (NYSE: F)
|
| Amount: | $58,298,770
|
| Maturity: | June 24, 2016
|
| Coupon: | 7.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above the step level, par plus 3.31%; if stock finishes at or above initial share price but below step level, par; 1% loss for every 1% decline
|
| Initial price: | $15.28
|
| Step level: | $16.43, 107.5% of initial price
|
| Pricing date: | June 11
|
| Settlement date: | June 18
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434G171
|
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