Published on 7/25/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $342,000 19.3% reverse convertibles linked to Omnivision
By Angela McDaniels
Seattle, July 25 - HSBC USA Inc. priced a $342,000 issue of reverse convertible notes due Oct. 29, 2007 linked to the common stock of Omnivision Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.825% for an annualized rate of 19.3%. Interest is payable monthly.
The payout at maturity will be par unless Omnivision stock falls below the barrier price of $13.74 during the life of the notes and finishes below the initial share price of $18.32, in which case the payout will be a number of Omnivision shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Omnivision Technologies, Inc.
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Amount: | $342,000
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Maturity: | Oct. 29, 2007
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Coupon: | 19.3%, payable monthly
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Price: | Par
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Payout at maturity: | If Omnivision stock falls below the barrier price during the life of the notes and finishes below the initial share price, 54.585 Omnivision shares; otherwise, par
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Initial share price: | $18.32
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Barrier price: | $13.74, 75% of initial share price
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Pricing date: | July 24
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Settlement date: | July 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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