New Issue: HSBC prices $35.33 million 7% coupon-bearing notes linked to Apple

By Angela McDaniels

Tacoma, Wash., March 16 - HSBC USA Inc. priced $35.33 million of 7% coupon-bearing notes due April 1, 2013 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the underwriter.

Interest is payable quarterly.

If the final price of Apple stock is greater than or equal to the threshold value, the payout at maturity will be par of $10. The threshold value is 92.4% of the initial share price. Otherwise, investors will lose 1% for every 1% that the final price is below the threshold value.

Issuer:	HSBC USA Inc.
Issue:	Coupon-bearing notes
Underlying stock:	Apple Inc. (Nasdaq: AAPL)
Amount:	$35,330,900
Maturity:	April 1, 2013
Coupon:	7%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	If final price of Apple stock is greater than or equal to threshold value, par; otherwise, 1% loss for every 1% that final price declines below threshold value
Initial share price:	$584.53
Threshold value:	$540.11, 92.4% of initial share price
Pricing date:	March 14
Settlement date:	March 21
Underwriter:	Bank of America Merrill Lynch
Fees:	1.75%
Cusip:	40433K439

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