By Angela McDaniels
Tacoma, Wash., July 18 – HSBC USA Inc. priced $2.58 million of 10% STEP Income Securities due July 28, 2017 linked to the American Depositary Receipts of Sony Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Sony ADRs is greater than or equal to the step level, 110% of the initial ADR price, the payout at maturity will be par of $10 plus 5%.
If the final ADR price is greater than or equal to the initial ADR price but less than the step level, investors will receive par.
If the final ADR price is less than the initial ADR price, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying ADRs: | Sony Co. (NYSE: SNE)
|
| Amount: | $2,577,970
|
| Maturity: | July 28, 2017
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final ADR price is greater than or equal to step level, par plus 5%; if final ADR price is greater than or equal to initial ADR price but less than step level, par; if final ADR price is less than initial ADR price, full exposure to decline
|
| Initial ADR price: | $30.13 (volume-weighted average price on pricing date)
|
| Step level: | $33.14, 110% of initial ADR price
|
| Pricing date: | July 14
|
| Settlement date: | July 21
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434V558
|
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