By Angela McDaniels
Seattle, March 27 - HSBC USA Inc. priced a $3.002 million offering of reverse convertible notes due June 28, 2007 linked to the common stock of Vertex Pharmaceuticals Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 7.3125% for an annualized rate of 29.25%. Interest is payable monthly.
The payout at maturity will be par unless Vertex stock falls below the barrier price of $21.04 during the life of the notes and finishes below the initial share price of $28.05, in which case the payout will be a number of Vertex shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Vertex Pharmaceuticals Inc.
|
| Amount: | $3.002 million
|
| Maturity: | June 28, 2007
|
| Coupon: | 29.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Vertex stock falls below the barrier price during the life of the notes and finishes below the initial share price, 35.65052 Vertex shares; otherwise, par
|
| Initial share price: | $28.05
|
| Barrier price: | $21.04, 75% of initial share price
|
| Pricing date: | March 23
|
| Settlement date: | March 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Agent fees: | 2.25%
|
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