By Susanna Moon
Chicago, Oct. 1 - HSBC USA Inc. priced $27.51 million of 11% STEP Income Securities due Oct. 17, 2014 linked to LinkedIn Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of LinkedIn shares finishes at or above the step level - 111% of the initial price - the payout at maturity will be par plus 3.77%.
If the stock finishes at or above the 95% trigger level but below the step level, the payout will be par.
Otherwise, investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | LinkedIn Corp. (NYSE: LNKD)
|
| Amount: | $27,506,150
|
| Maturity: | Oct. 17, 2014
|
| Coupon: | 11%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If LinkedIn shares finish at or above step level, par plus 3.77%; if shares finish at or above trigger level but below step level, par; otherwise, full exposure to losses
|
| Initial price: | $253.17
|
| Step level: | 111% of initial level
|
| Trigger level: | 95% of initial level
|
| Pricing date: | Sept. 26
|
| Settlement date: | Oct. 4
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433X183
|
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