New Issue: HSBC sells $650,000 14% reverse convertibles linked to Verasun

By Laura Lutz

Des Moines, April 27 - HSBC USA Inc. priced $650,000 of 14% reverse convertible notes due July 30, 2007 linked to the common stock of Verasun Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable at maturity.

At maturity, investors will receive par unless Verasun stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Verasun shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Verasun Energy Corp.
Amount:	$650,000
Maturity:	July 30, 2007
Coupon:	14%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Verasun stock falls below $15.22 during the life of the notes and finishes below its initial share price, in which case shares of Verasun equal to $1,000 divided by the initial share price
Initial share price:	$19.03
Protection price:	$15.22, 80% of $19.03
Pricing date:	April 25
Settlement date:	April 30
Agent:	HSBC Securities (USA) Inc.
Agent fee:	2.25%

© 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.