By Jennifer Chiou
New York, July 25 - HSBC USA Inc. priced a $0.163 million issue of 16% annualized reverse convertible notes due Jan. 29, 2008 linked to the common stock of XM Satellite Radio Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The payout at maturity will be par unless XM stock falls below the barrier price of $8.323 during the life of the notes and finishes below the initial share price of $11.89, in which case the payout will be a number of XM 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: | XM Satellite Radio Holdings Inc.
|
| Amount: | $0.163 million
|
| Maturity: | Jan. 29, 2008
|
| Coupon: | 16%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if XM stock remains at or above the barrier price during the life of the notes or finishes at or above the initial share price; otherwise, XM shares equal to $1,000 divided by the initial share price
|
| Initial share price: | $11.89
|
| Barrier price: | $8.323, 70% of initial share price
|
| Pricing date: | July 24
|
| Settlement date: | July 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.15%
|
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