By Susanna Moon
Chicago, July 17 - HSBC USA Inc. priced $18.51 million of coupon bearing notes due July 26, 2013 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 10%, payable quarterly.
If Valero Energy shares finish at or above the threshold level - 91.26% of the initial level - the payout at maturity will be par of $10.
Otherwise, investors will be exposed to losses beyond the threshold level.
Bank of America Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Coupon bearing notes
|
| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
|
| Amount: | $18,508,800
|
| Maturity: | July 26, 2013
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | Par if stock finishes at or above threshold level; otherwise, exposure to losses beyond threshold level
|
| Initial price: | $24.74
|
| Threshold level: | $22.58, 91.26% of initial value
|
| Pricing date: | July 13
|
| Settlement date: | July 20
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433M518
|
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