By E. Janene Geiss
Philadelphia, Dec. 28 - HSBC USA Inc. priced $1 million of 16.05% annualized reverse convertible notes due Jan. 2, 2009 linked to the common stock of Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Citigroup stock falls below the protection price - 70% 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 Citigroup 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: | Citigroup Inc. (Symbol: C)
|
| Amount: | $1 million
|
| Maturity: | Jan. 2, 2009
|
| Coupon: | 16.05%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | If Citigroup stock falls below $20.6920 during the life of the notes and finishes below its initial price, shares of Citigroup equal to par divided by the initial price; otherwise, par
|
| Initial price: | $29.56
|
| Barrier price: | $20.6920, 70% of $29.56
|
| Pricing date: | Dec. 27
|
| Settlement date: | Jan. 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
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