By Angela McDaniels
Seattle, July 25 - HSBC USA Inc. priced a $1.318 million issue of reverse convertible notes due Jan. 29, 2008 linked to the common stock of Moody's Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.375% for an annualized rate of 12.75%. Interest is payable monthly.
The payout at maturity will be par unless Moody's stock falls below the barrier price of $44.752 during the life of the notes and finishes below the initial share price of $55.94, in which case the payout will be a number of Moody's 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: | Moody's Corp.
|
| Amount: | $1.318 million
|
| Maturity: | Jan. 29, 2008
|
| Coupon: | 12.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Moody's stock falls below the barrier price during the life of the notes and finishes below the initial share price, 17.876 shares; otherwise, par
|
| Initial share price: | $55.94
|
| Barrier price: | $44.752, 80% of initial share price
|
| Pricing date: | July 24
|
| Settlement date: | July 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
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