By Marisa Wong
Madison, Wis., Nov. 23 - HSBC USA Inc. priced $8.85 million of 8% STEP Income Securities due Dec. 6, 2012 linked to Honeywell International Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If Honeywell stock finishes at or above the step level - 108% of the initial share price - the payout at maturity will be par of $10 plus the step payment of 8.62%.
If the stock finishes below the step level but at or above the threshold level - 95% of the initial price - the payout will be par.
Otherwise, investors will be exposed to any decline in the share price beyond 5%.
Bank of America Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Honeywell International Inc.
|
| Amount: | $8,847,300
|
| Maturity: | Dec. 6, 2012
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Honeywell stock finishes at or above step level, par plus 8.62%; if stock finishes below step level but at or above threshold level, par; full exposure to losses beyond 5%
|
| Initial price: | $51.00
|
| Step level: | $55.08, 108% of initial price
|
| Threshold level: | $48.45, 95% of initial price
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 30
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433C122
|
© 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.
