By Marisa Wong
Madison, Wis., Feb. 9 – HSBC USA Inc. priced $18.82 million of 8.5% STEP Income Securities due Feb. 19, 2016 linked to Micron Technology Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If Micron Technology stock finishes at or above the 108.5% step level, the payout at maturity will be par of $10 plus the step payment of 1.71%.
If the stock finishes below the step level but at or above the 95% threshold level, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline beyond the 5% buffer.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | STEP Income Securities
|
Underlying stock: | Micron Technology Inc. (Nasdaq: MU)
|
Amount: | $18,819,810
|
Maturity: | Feb. 19, 2016
|
Coupon: | 8.5%, payable quarterly
|
Price: | Par of $10
|
Payout at maturity: | If stock finishes at or above the step level, par plus 1.71%; if stock finishes below step level but at or above threshold level, par; otherwise, 1% loss for every 1% drop beyond 5%
|
Initial price: | $29.35
|
Step level: | $31.84, 108.5% of initial price
|
Threshold price: | $27.88, 95% of initial price
|
Pricing date: | Feb. 5
|
Settlement date: | Feb. 12
|
Underwriters: | BofA Merrill Lynch
|
Fees: | 1.75%
|
Cusip: | 40434F553
|
|
|
© 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.