By Angela McDaniels
Tacoma, Wash., Dec. 12 - HSBC USA Inc. priced $12.88 million of 9% STEP Income Securities due Dec. 29, 2014 linked to the common stock of Biogen Idec, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Biogen Idec stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment. The step level is 109% of the initial share price, and the step payment is 5.21%.
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 1-to-1 exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Biogen Idec Inc. (Nasdaq: BIIB)
|
| Amount: | $12,879,550
|
| Maturity: | Dec. 29, 2014
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price of Biogen Idec stock is greater than or equal to step level, par plus 5.21%; if final share price is greater than or equal to initial share price but is less than step level, par; 1% loss for every 1% that final share price is less than initial share price
|
| Initial share price: | $285.40, equal to volume-weighted average price on pricing date
|
| Step level: | $331.09, 109% of initial share price
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 17
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434B693
|
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