By E. Janene Geiss
Philadelphia, Aug. 29 - HSBC USA Inc. priced $1.029 million of reverse convertible notes due March 4, 2008 linked to United States Steel Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 7.25% for an annual interest rate of 14.5%. Interest is payable monthly.
The payout at maturity will be par in cash if U.S. Steel stock stays at or above the protection price, 75% of the initial share price of $87.58, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in U.S. Steel 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: | United States Steel Corp. (NYSE: X)
|
| Amount: | $1.029 million
|
| Maturity: | March 4, 2007
|
| Coupon: | 14.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if U.S. Steel stock stays at or above the protection price of $65.685 during the life of the notes or finishes at or above the initial share price; otherwise, 11 U.S. Steel shares
|
| Initial share price: | $87.58
|
| Protection price: | $65.685, 75% of $87.58
|
| Pricing date: | Aug. 28
|
| Settlement date: | Aug. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
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