HSBC USA to price 10% worst of reverse convertibles linked to three ETFs

By E. Janene Geiss

Philadelphia, May 16 - HSBC USA Inc. plans to price an issue of 10% annualized worst of reverse convertible notes due Aug. 19, 2008 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The basket consists of Standard & Poor's Depositary Receipts, the iShares MSCI Emerging Markets index fund and the Powershares QQQ Trust, Series 1.

The payout at maturity will be determined according to the performance of all reference assets during the life of the notes.

At maturity, investors will receive par unless any share falls below its protection price - 83.5% of its initial share price - during the life of the notes and the worst-performing share finishes below its initial price, in which case the payout will be a number of the worst-performing shares equal to par divided by that share's initial price.

The notes are expected to price May 19 and settle May 22.

HSBC Securities (USA) Inc. will be the agent.

© 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.