By Jennifer Chiou
New York, April 30 - HSBC USA Inc. priced $10,845,920 of 0% Strategic Accelerated Redemption Securities due May 10, 2013 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If JPMorgan shares close at or above the initial share price on any of three observation dates, the notes will be called at par of $10 plus an annualized call premium of 18%.
The payout at maturity will be par if the final share price is at least 95% of the initial share price. Investors will be exposed to any decline below the threshold level.
Bank of America Merrill Lynch is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying stock: | JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $10,845,920
|
| Maturity: | May 10, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is at least 95% of initial share price; exposure to decline beyond 5%
|
| Call: | Automatically at annualized call premium of 18% if JPMorgan shares close at or above the initial share price on any of three observation dates
|
| Initial price: | $43.63
|
| Pricing date: | April 26
|
| Settlement date: | May 7
|
| Underwriters: | Bank of America Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 40433K116
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
