New Issue: HSBC prices $293,000 13.6% reverse convertibles linked to Goldman Sachs

By Laura Lutz

Des Moines, Feb. 12 - HSBC USA Inc. priced $293,000 of 13.6% reverse convertible notes due Aug. 13, 2008 linked to the common stock of the Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If Goldman Sachs stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of Goldman Sachs shares equal to par divided by the initial price.

Otherwise, the payout will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	The Goldman Sachs Group, Inc. (Symbol: GS)
Amount:	$293,000
Maturity:	Aug. 13, 2008
Coupon:	13.6%, paid monthly
Price:	Par
Payout at maturity:	If Goldman Sachs stock falls below $149.656 during the life of the notes and finishes below its initial price, shares of Goldman Sachs equal to par divided by the initial price; otherwise, par
Initial price:	$187.07
Barrier price:	$149.656, 80% of $187.07
Pricing date:	Feb. 8
Settlement date:	Feb. 13
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

© 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.