By Laura Lutz
Des Moines, Dec. 10 - HSBC USA Inc. priced $691,000 of 16.7% reverse convertible notes due March 12, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Target stock falls below the barrier price - 75% 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 Target shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Target Corp. (Symbol: TGT)
|
| Amount: | $691,000
|
| Maturity: | March 12, 2008
|
| Coupon: | 16.7%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | If Target stock falls below $41.6325 during the life of the notes and finishes below its initial price, shares of Target equal to par divided by the initial price; otherwise, par
|
| Initial price: | $55.51
|
| Barrier price: | $41.6325, 75% of $55.51
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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