New Issue: HSBC sells $189,000 14.25% reverse convertibles linked to AMR

By E. Janene Geiss

Philadelphia, Aug. 29 - HSBC USA Inc. priced $189,000 of 14.25% reverse convertible notes due Sept. 3, 2008 linked to AMR Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity, in addition to interest, will be par in cash if AMR stock stays at or above the protection price, 60% of the initial share price of $23.36, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in AMR stock, with the number of 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:	AMR Corp. (Symbol: AMR)
Amount:	$189,000
Maturity:	Sept. 3, 2008
Coupon:	14.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if AMR stock stays at or above the protection price of $14.016 during the life of the notes or finishes at or above the initial share price; otherwise, 42 AMR shares
Initial share price:	$23.36
Protection price:	$14.016, 60% of $23.36
Pricing date:	Aug. 28
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.