HSBC USA to price 25% reverse convertibles linked to Elan

By E. Janene Geiss

Philadelphia, Sept. 26 - HSBC USA Inc. plans to price reverse convertible notes linked to the American Depository Shares of Elan Corp., plc, according to an FWP filing with the Securities and Exchange Commission.

The notes will mature three business days after the final valuation date, slated for April 8, 2008. The six-month notes will pay 12.5% for an annualized rate of 25%. Interest will be payable monthly.

At maturity, investors will receive par unless Elan falls below the barrier price - 70% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Elan ADSs equal to $1,000 divided by the initial share price.

The notes are expected to price Oct. 5 and settle Oct. 11.

HSBC Securities (USA) Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.