Published on 5/25/2006 in the Prospect News Convertibles Daily.
New Issue: Credit Suisse sells $0.542 million 9% reverse convertibles linked to Martin Marietta
By Jennifer Chiou
New York, May 25 - Credit Suisse (USA), Inc. priced a $0.542 million offering of 9% reverse convertible securities due May 25, 2007 linked to Martin Marietta Materials, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par unless Martin Marietta stock falls below the knock-in level of $70.20, 80% of its initial price of $87.75, during the life of the notes.
If the trigger is hit, payout will be par in cash if Martin Marietta's stock closes above its initial price on the valuation date of May 21, 2007. Otherwise, the payout will be a number of Martin Marietta shares equal to par of $1,000 divided by the initial price.
Issuer: | Credit Suisse (USA) Inc.
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Issue: | Reverse convertible securities
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Amount: | $0.542 million
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Underlying stock: | Martin Marietta Materials, Inc.
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Maturity: | May 25, 2007
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Coupon: | 9%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless stock falls below knock-in price of $70.20 during the life of the notes and closes below its initial value on May 21, 2007, payout will then be par of $1,000 divided by $87.75 shares of Martin Marietta stock
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Initial share price: | $87.75
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Knock-in price: | $70.20, 80% of initial price
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Pricing date: | May 23
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Settlement date: | May 25
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Underwriter: | Credit Suisse
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