By E. Janene Geiss
Philadelphia, Aug. 29 - HSBC USA Inc. priced $1.08 million of 11% reverse convertible notes due March 4, 2008 linked to EMC Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 5.5% for an annual rate of 11%. Interest will be payable monthly.
The payout at maturity, in addition to interest, will be par in cash if EMC stock stays at or above the protection price, 80% of the initial share price of $19.09, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in EMC 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: | EMC Corp. (Symbol: EMC)
|
| Amount: | $1.077 million
|
| Maturity: | March 4, 2008
|
| Coupon: | 11%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if EMC stock stays at or above the protection price of $19.09 during the life of the notes or finishes at or above the initial share price; otherwise, 52 EMC shares
|
| Initial share price: | $19.09
|
| Protection price: | $15.2720, 80% of $19.09
|
| Pricing date: | Aug. 28
|
| Settlement date: | Aug. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
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