New Issue: HSBC prices $13.42 million market-linked step-up notes tied to MSCI EM

By Toni Weeks

San Diego, April 20 - HSBC USA Inc. priced $13.42 million of market-linked step-up notes due April 29, 2016 linked to the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is greater than the step-up value - 148% of the initial index level - the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but is below the step-up value, the payout will be par plus the step-up payment of $4.80 per $10.00 principal amount.

Investors will be fully exposed to any losses.

Bank of America Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Market-linked step-up notes
Underlying index:	MSCI Emerging Markets index
Amount:	$13,419,300
Maturity:	April 29, 2016
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above 148% of initial level, par plus index return; if index return is zero or positive but finishes below step-up value, par plus $4.80 per $10 principal amount; full exposure to any losses
Initial level:	1,023.75
Step-up value:	1,515.15, 148% of initial level
Pricing date:	April 18
Settlement date:	April 25
Agent:	Bank of America Merrill Lynch
Fees:	2.5%
Cusip:	40433M302

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