Published on 8/20/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $16.63 million 7% coupon-bearing notes tied to Starbucks via Bank of America
By Toni Weeks
San Diego, Aug. 20 - HSBC USA Inc. priced $16.63 million of coupon-bearing notes due Aug. 30, 2013 linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly at the rate of 7% per year.
If the ending price of Starbucks stock finishes at or above the threshold value of 90.69% of the initial value, the payout at maturity will be par of $10.
Investors will share in losses beyond the threshold value.
Bank of America Merrill Lynch is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Coupon-bearing notes
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Underlying stock: | Starbucks Corp. (Nasdaq: SBUX)
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Amount: | $16,630,690
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Maturity: | Aug. 30, 2013
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Coupon: | 7%, payable quarterly
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Price: | Par of $10
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Payout at maturity: | If stock finishes at or above 90.69% of initial value, par; otherwise, exposure to losses beyond threshold value
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Initial price: | $48.15
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Threshold value: | $43.69, 90.69% of initial value
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Pricing date: | Aug. 16
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Settlement date: | Aug. 23
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Agent: | Bank of America Merrill Lynch
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Fees: | 1.75%
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Cusip: | 40433M294
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