By Wendy Van Sickle
Columbus, Ohio, June 2 – HSBC USA Inc. priced $4.45 million of 13.5% STEP Income Securities due June, 2021 linked to the common stock of ServiceNow, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price is greater than or equal to the step level, 113.5% of the initial price, the payout at maturity will be par of $10 plus 3.22%.
If the final price is greater than or equal to the initial price but less than the step level, investors will receive par.
If the final price is less than the initial 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: | ServiceNow, Inc.
|
| Amount: | $4,454,000
|
| Maturity: | June 11, 2021
|
| Coupon: | 13.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If final stock price is greater than or equal to step level, par plus 3.22%; if final price is greater than or equal to initial price but less than step level, par; if final price is less than initial price, full exposure to decline
|
| Initial price: | $380.11
|
| Step level: | $431.42, 113.5% of initial price
|
| Pricing date: | May 28
|
| Settlement date: | June 4
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 40438J684
|
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