By Marisa Wong
Madison, Wis., Aug. 19 - HSBC USA Inc. priced $24.95 million of 9.5% STEP Income Securities due Aug. 29, 2014 linked to the performance of Whirlpool Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Whirlpool shares finishes at or above the step level - 109.5% of the initial price - the payout at maturity will be par of $10 plus $0.533.
If the stock finishes at or above the initial price but below the step level, the payout will be par. Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Whirlpool Corp. (NYSE: WHR)
|
| Amount: | $24,954,510
|
| Maturity: | Aug. 29, 2014
|
| Coupon: | 9.5%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If Whirlpool shares finish at or above STEP level, par plus 5.33%; if shares finish at or above initial price but below STEP level, par; full exposure to losses
|
| Initial price: | $131.35
|
| STEP level: | $143.83, 109.5% of initial value
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 22
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40433X373
|
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