By Marisa Wong
Madison, Wis., March 31 - HSBC USA Inc. priced $48.23 million 9% STEP Income Securities due April 10, 2015 linked to the common stock of Celgene Corp., according to an FWP with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the final price of Celgene stock is greater than or equal to the step level, 109% of the initial share price, the payout at maturity will be par of $10 plus the step payment of $0.452.
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.
Investors will be fully exposed to any decline in the share price.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Celgene Corp. (Nasdaq: CELG)
|
| Amount: | $48,231,290
|
| Maturity: | April 10, 2015
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price of Celgene stock is greater than or equal to step level, par plus 4.52%; if final share price is greater than or equal to initial share price but is less than step level, par; 1% loss for every 1% that final share price is less than initial share price
|
| Initial share price: | $142.02, equal to volume-weighted average price on pricing date
|
| Step level: | $154.80, 109% of initial share price
|
| Pricing date: | March 27
|
| Settlement date: | April 3
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434C881
|
© 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.
