Hilltop Securities Inc. initiated a commercial paper program under which the company may issue up to $200 million of senior secured commercial paper notes, according to a filing by its ultimate parent, Hilltop Holdings Inc.

The commercial paper notes will not be redeemable prior to maturity or subject to voluntary prepayment and will not bear interest, but will be sold at a discount to par, with maturities ranging from 14 days to 270 days from the issuance date. The discount to maturity will be based on London interbank offered rate plus an applicable margin.

The notes will be secured by a pledge of collateral by Hilltop Securities, as specified and defined in an indenture and a collateral account control agreement between the company and The Bank of New York Mellon as trustee.

Net proceeds from the offering will be used for general corporate purposes, including working capital.