By Angela McDaniels
Tacoma, Wash., March 2 – HSBC USA Inc. priced $18.59 million of 11.5% STEP Income Securities due March 11, 2016 linked to the common stock of Helmerich & Payne, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Helmerich & Payne stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 4.5%. The step level is 108% of the initial share price.
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.
If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
Issuer: | Deutsche Bank AG, London Branch
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Issue: | STEP Income Securities
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Underlying stock: | Helmerich & Payne (NYSE: HP)
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Amount: | $18,590,750
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Maturity: | March 11, 2016
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Coupon: | 11.5%, payable quarterly
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Price: | Par of $10.00
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Payout at maturity: | If final price of Helmerich & Payne stock is greater than or equal to step level, par of $10 plus 4.5%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, one-to-one exposure to decline
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Initial share price: | $66.58, volume-weighted average price of stock on pricing date
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Step level: | $74.24, 111.5% of initial share price
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Pricing date: | Feb. 26
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Settlement date: | March 5
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Agent: | BofA Merrill Lynch
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Fees: | 1.75%
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Cusip: | 40434F280
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