By Laura Lutz
Des Moines, Dec. 20 - HSBC USA Inc. priced $1 million of 11.05% annualized reverse convertible notes due June 24, 2008 linked to the common stock of Wal-Mart Stores, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Wal-Mart 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, the payout at maturity will be a number of Wal-Mart shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Wal-Mart Stores, Inc. (Symbol: WMT)
|
| Amount: | $1 million
|
| Maturity: | June 24, 2008
|
| Coupon: | 11.05%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | If Wal-Mart stock falls below $38.464 during the life of the notes and finishes below its initial price, shares of Wal-Mart equal to par divided by the initial price; otherwise, par
|
| Initial price: | $48.08
|
| Barrier price: | $38.464, 80% of $48.08
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
© 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.
