Published on 10/3/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $837,000 20% reverse convertibles linked to four stocks
By Susanna Moon
Chicago, Oct. 3 - HSBC USA Inc. priced $837,000 of 20% reverse convertible notes due Jan. 7, 2008 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are Baidu.com, Inc., Dryships Inc., General Motors Corp. and Crocs, Inc.
Interest is payable monthly.
For each stock, the payout at maturity will be $250 unless that stock falls below its barrier price - 70% of its initial share price - during the life of the notes and finishes below its initial share price, in which case the payout for that stock will be a number of its shares equal to $250 divided by the initial share price or, at HSBC's option, the equivalent cash value.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | Baidu.com, Inc. (Nasdaq: BIDU), Dryships Inc. (Nasdaq: DRYS), General Motors Corp. (NYSE: GM) and Crocs, Inc. (Nasdaq: CROX)
|
| Amount: | $837,000
|
| Maturity: | Jan. 7, 2008
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If a stock falls below its barrier price during the life of the notes and finishes below its initial share price, a number of shares of that stock equal to $250 divided by its initial share price; $250 for each stock that remains at or above its barrier price during the life of the notes or finishes at or above its initial share price
|
| Initial share prices: | $320.44 for Baidu.com, $98.95 for Dryships, $37.05 for General Motors and $67.22 for Crocs
|
| Barrier prices: | $224.308 for Baidu.com, $69.265 for Dryships, $25.935 for General Motors and $47.054 for Crocs
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
© 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.
