By Angela McDaniels
Tacoma, Wash., July 13 – HSBC USA Inc. priced $13.38 million 10% STEP Income Securities due July 22, 2016 linked to the common stock of Skyworks Solutions, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Skyworks stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 9.35%. The step level is 110% of the initial share price.
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 one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Skyworks Solutions, Inc. (Nasdaq: SWKS)
|
| Amount: | $13,381,710
|
| Maturity: | July 22, 2016
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price of Skyworks stock is greater than or equal to step level, par plus 9.35%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, full exposure to losses
|
| Initial share price: | $95.38, volume-weighted average price on pricing date
|
| Step level: | $104.92, 110% of initial share price
|
| Pricing date: | July 9
|
| Settlement date: | July 16
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434E853
|
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