By Laura Lutz
Des Moines, Dec. 17 - HSBC USA Inc. priced $643,000 of 15.5% reverse convertible notes due June 18, 2008 linked to the common stock of Barrick Gold Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Barrick Gold stock falls below the barrier price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of Barrick Gold shares equal to par divided by the initial share price.
Otherwise, the payout will be par
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Barrick Gold Corp. (Symbol: ABX)
|
| Amount: | $643,000
|
| Maturity: | June 18, 2008
|
| Coupon: | 15.5%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | If Barrick Gold stock falls below $28.50 during the life of the notes and finishes below its initial price, shares of Barrick Gold equal to par divided by the initial price; otherwise, par
|
| Initial price: | $38.00
|
| Barrier price: | $28.50, 75% of $38.00
|
| Pricing date: | Dec. 14
|
| Settlement date: | Dec. 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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