New Issue: HSBC sells $77,000 of 19.8% reverse convertibles linked to Georgia Gulf

By Laura Lutz

Des Moines, July 25 - HSBC USA Inc. priced $77,000 of 19.8% reverse convertible notes due Jan. 29, 2008 linked to the common stock of Georgia Gulf Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

At maturity, investors will receive par unless Georgia Gulf stock falls below the protection price - 80% 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 Georgia Gulf shares equal to $1,000 divided by the initial share price.

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

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Georgia Gulf Corp.
Amount:	$77,000
Maturity:	Jan. 29, 2008
Coupon:	19.8%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Georgia Gulf stock falls below $15.224 during the life of the notes and finishes below its initial price, in which case shares of Georgia Gulf equal to $1,000 divided by the initial price
Initial share price:	$19.03
Barrier price:	$15.224, 80% of $19.03
Pricing date:	July 24
Settlement date:	July 27
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

© 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.