Published on 12/22/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $387,000 13% notes linked to Western Digital stock
By Laura Lutz
Washington, Dec. 22 - HSBC USA Inc. priced a $387,000 issue of 13% reverse convertible notes due June 26, 2007 linked to Western Digital Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Western Digital stock falls below the barrier price of $16.55 during the life of the notes and finishes below its initial price, in which case payout will be a number of Western Digital 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: | Western Digital Corp.
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Amount: | $387,000
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Maturity: | Dec. 26, 2007
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Coupon: | 13%, paid quarterly
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Price: | Par
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Payout at maturity: | Par in cash unless Western Digital stock falls below $16.55 during the life of the notes and finishes below its initial price, in which case $1,000 divided by the initial price shares of Western Digital stock
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Initial share price: | $20.69
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Barrier price: | $16.55, 80% of initial share price
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Pricing date: | Dec. 21
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Settlement date: | Dec. 27
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 2.25%
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