New Issue: HSBC prices $21.25 million Stars due 2014 linked to Ford Motor

By Jennifer Chiou

New York, Sept. 30 - HSBC USA Inc. priced $21,248,970 of 0% Strategic Accelerated Redemption Securities due Oct. 6, 2014 linked to Ford Motor Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.

If Ford Motor shares close at or above the initial price on any observation date, the notes will be called at an annualized rate of 15.75%.

Investors will receive par if the stock falls by up to 5% and will lose 1% for every 1% decline beyond 5%.

BofA Merrill Lynch is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying stock:	Ford Motor Co.
Amount:	$21,248,970
Maturity:	Oct. 6, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	Par if stock falls by up to 5%; 1% loss for every 1% decline beyond 5%
Call:	At par plus 15.75% per year if Ford Motor shares close at or above the initial price on March 21, 2014, June 20, 2014 and Sept. 29, 2014
Initial price:	$17.25
Threshold level: $16.39, 95% of initial level
Pricing date:	Sept. 26
Settlement date:	Oct. 4
Underwriters:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	40433X191

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