By Marisa Wong
Madison, Wis., Dec. 30 – HSBC USA Inc. priced $17.22 million of 7.5% STEP Income Securities due Jan. 15, 2016 linked to the common stock of Dow Chemical Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the final price of Dow Chemical stock is greater than or equal to the step level, 107.5% of the initial share price, the payout at maturity will be par of $10 plus the step payment of $0.811.
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.
Investors will be fully exposed to any decline in the share price.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Dow Chemical Co. (NYSE: DOW)
|
| Amount: | $17,216,500
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 7.5%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above the step level, par plus 8.11%; if stock finishes at or above initial share price but below step level, par; 1% loss for every 1% decline
|
| Initial price: | $45.95
|
| Step level: | $49.40, 107.5% of initial price
|
| Pricing date: | Dec. 23
|
| Settlement date: | Jan. 2
|
| Underwriters: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434F777
|
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