New Issue: HSBC prices $20.55 million market-linked step-up notes on S&P 500

By Jennifer Chiou

New York, April 30 - HSBC USA Inc. priced $20,547,070 of market-linked step-up notes due April 24, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is greater than the step-up value - 120.54% 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 $2.054 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:	S&P 500
Amount:	$20,547,070
Maturity:	April 24, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above 120.54% of initial level, par plus index return; if index return is zero or positive but finishes below step-up value, par plus $2.054 per $10 principal amount; full exposure to any losses
Initial level:	1,399.98
Step-up value:	1,687.54, 120.54% of initial level
Pricing date:	April 26
Settlement date:	May 3
Agent:	Bank of America Merrill Lynch
Fees:	2%
Cusip:	40433K173

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