By Marisa Wong
Madison, Wis., June 18 - HSBC USA Inc. priced $19.79 million of coupon-bearing notes due June 28, 2013 linked to the common stock of Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable quarterly at the rate of 7.5% per year.
If Wells Fargo stock finishes at or above the threshold value of 87.34% of the initial value, the payout at maturity will be par of $10.
Investors will share in losses beyond the threshold value.
Bank of America Merrill Lynch is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Coupon-bearing notes
|
| Underlying stock: | Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $19,785,560
|
| Maturity: | June 28, 2013
|
| Coupon: | 7.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Wells Fargo stock finishes at or above threshold value, par; exposure to losses beyond threshold value
|
| Initial price: | $31.86
|
| Threshold value: | $27.83, 87.34% of initial price
|
| Pricing date: | June 14
|
| Settlement date: | June 21
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433M732
|
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