New Issue: HSBC prices $25.06 million 7.5% STEP Income Securities linked to Ford

By Angela McDaniels

Tacoma, Wash., June 30 – HSBC USA Inc. priced $25.06 million of 7.5% STEP Income Securities due July 11, 2016 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

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 1.5%. 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 be fully exposed 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:	$25,059,210
Maturity:	July 11, 2016
Coupon:	7.5%, 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 1.5%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, full exposure to losses
Initial share price:	$15.47, volume-weighted average price on pricing date
Step level:	$16.63, 107.5% of initial share price
Pricing date:	June 25
Settlement date:	July 2
Agent:	BofA Merrill Lynch
Fees:	1.75%
Cusip:	40434E705

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