New Issue: HSBC prices $35.12 million coupon-bearing notes on Chesapeake Energy

By Jennifer Chiou

New York, Feb. 13 - HSBC USA Inc. priced $35.12 million of 9.5% coupon-bearing notes due Feb. 25, 2013 linked to the common stock of Chesapeake Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If the final price of Chesapeake Energy stock is greater than or equal to the threshold value, the payout at maturity will be par of $10. Investors will lose 1% for every 1% that the final price declines beyond the threshold value, 89.74% of the initial share price.

Bank of America Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Coupon-bearing notes
Underlying stock:	Chesapeake Energy Corp. (NYSE: CHK)
Amount:	$35,121,700
Maturity:	Feb. 25, 2013
Coupon:	9.5%, payable quarterly
Price:	Par
Payout at maturity:	If stock finishes at or above 89.74% of initial value, par; otherwise, exposure to losses beyond threshold value
Initial price:	$22.36
Threshold value:	$20.07, 89.74% of initial value
Pricing date:	Feb. 9
Settlement date:	Feb. 16
Agent:	Bank of America Merrill Lynch
Fees:	1.75%
Cusip:	40433K595

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