By Laura Lutz
Des Moines, Jan. 29 - HSBC USA Inc. priced $2 million of 16.25% auto-callable reverse convertible notes due July 31, 2008 linked to Apple Inc. common stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be automatically called if the closing price of Apple stock is greater than the intial price on April 25, 2008. The call amount will be par plus accrued interest.
If Apple stock falls below the knock-in price - 60% of the initial level - during the life of the notes and finishes below its initial price, the payout at maturity will be a number of share equal to par divided by the initial price.
Otherwise, the payout at maturity will be par.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Auto-callable reverse convertible notes
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $2 million
|
| Maturity: | July 31, 2008
|
| Coupon: | 16.25%
|
| Price: | Par
|
| Payout at maturity: | If Apple stock falls below knock-in price during life of notes and finishes below initial price, Apple shares equal to par divided by initial price; otherwise, par
|
| Initial level: | $130.01
|
| Knock-in level: | $78.006, 60% of initial price
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.8%
|
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