New Issue: HSBC prices $10.7 million coupon-bearing notes linked to Ford

By Angela McDaniels

Tacoma, Wash., Dec. 2 - HSBC USA Inc. priced $10.7 million of coupon-bearing notes due Dec. 12, 2014 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly at the rate of 7.05% per year.

If Ford shares finish at or above the threshold value, 95% of the initial price, the payout at maturity will be par of $10. Otherwise, investors will lose 1% for every 1% that the shares decline beyond the threshold value.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Coupon-bearing notes
Underlying stock:	Ford Motor Co. (NYSE: F)
Amount:	$10,697,000
Maturity:	Dec. 12, 2014
Coupon:	7.05%, payable quarterly
Price:	Par of $10
Payout at maturity:	If stock finishes at or above threshold value, par; otherwise, exposure to losses beyond threshold value
Initial share price:	$16.91
Threshold value:	$16.06, or 95% of initial value
Pricing date:	Nov. 26
Settlement date:	Dec. 3
Agent:	BofA Merrill Lynch
Fees:	1.75%
Cusip:	40434B768

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