Published on 10/30/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $310,000 14% reverse convertibles linked to Superior Energy
By Laura Lutz
Des Moines, Oct. 30 - HSBC USA Inc. priced a $310,000 issue of 14% reverse convertible notes due Oct. 31, 2007 linked to Superior Energy Services, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Superior Energy Services stock falls below the barrier price of $24.66 during the life of the notes and finishes below its initial price on the valuation day, Oct. 26, 2007, in which case payout will be a number of Superior Energy Services shares equal to $1,000 divided by the initial share price.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Superior Energy Services, Inc.
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Amount: | $310,000
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Maturity: | Oct. 31, 2007
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Coupon: | 14%, paid quarterly
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Price: | Par
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Payout at maturity: | If Superior Energy Services falls below $24.66 during the life of the notes and finishes below its initial price, shares of Superior Energy Services stock equal to $1,000 divided by the initial price; otherwise, par in cash
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Initial share price: | $30.82
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Barrier price: | $24.66, 80% of initial share price
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 2.25%
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