By Susanna Moon
Chicago, July 30 - HSBC USA Inc. priced $28.73 million of 8% STEP Income Securities due Aug. 8, 2014 linked to the American Depositary Receipts of Petroleo Brasileiro SA, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Petrobras shares finishes at or above the step level - 108% of the initial price - the payout at maturity will be par of $10 plus 5.3%.
If the shares finish at or above 95% of the initial price 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 shares: | Petroleo Brasileiro SA (NYSE: PBR)
|
| Amount: | $28,725,840
|
| Maturity: | Aug. 8, 2014
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If Petrobras shares finish at or above step level, par plus 5.3%; if shares finish at or above 95% of initial price but below STEP level, par; full exposure to losses
|
| Initial price: | $14.40
|
| Threshold price: | $13.68, 95% of initial value
|
| STEP level: | $15.55, 108% of initial value
|
| Pricing date: | July 25
|
| Settlement date: | Aug. 1
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433X399
|
© 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.
