By Laura Lutz
Des Moines, Aug. 13 - HSBC USA Inc. priced $4.275 million of 12.15% reverse convertible notes due Feb. 14, 2008 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless Alcoa stock falls below the protection price - 65% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Alcoa shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Alcoa Inc. (NYSE: AA)
|
| Amount: | $4.275 million
|
| Maturity: | Feb. 14, 2008
|
| Coupon: | 12.15%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Alcoa stock falls below $22.5485 during the life of the notes and finishes below its initial price, in which case shares of Alcoa equal to $1,000 divided by the initial price
|
| Initial share price: | $34.69
|
| Barrier price: | $22.5485, 65% of $34.69
|
| Pricing date: | Aug. 10
|
| Settlement date: | Aug. 15
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.85%
|
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