By Marisa Wong
Morgantown, W.Va., March 3 – HSBC USA Inc. priced $5.47 million of 7% STEP Income Securities due March 10, 2017 linked to an equally weighted basket of four common stocks, according to an a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of 3M Co., AT&T Inc., Pfizer Inc. and Qualcomm Inc.
Interest will be payable quarterly.
If the final basket level is greater than or equal to the step level, 107% of the initial level, the payout at maturity will be par of $10 plus the step payment of 1%.
If the basket level is greater than or equal to the initial level but less than the step level, investors will receive par.
Investors will be fully exposed to any basket decline.
BofA Merrill Lynch is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | STEP Income Securities
|
| Underlying basket: | 3M Co. (NYSE: MMM), AT&T Inc. (NYSE: T), Pfizer Inc. (NYSE: PFE) and Qualcomm Inc. (Nasdaq: QCOM)
|
| Amount: | $5,470,090
|
| Maturity: | March 10, 2017
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| Coupon: | 7% per year, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the final basket level is greater than or equal to the step level, 107% of initial level, par plus the step payment of 1%; if the basket level is greater than or equal to the initial level but less than the step level, par; investors will be fully exposed to any basket decline
|
| Initial prices: | $158.99 for 3M, $37.37 for AT&T, $30.59 for Pfizer, $51.64 for Qualcomm
|
| Pricing date: | Feb. 25
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| Settlement date: | March 3
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40434N762
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