By Laura Lutz
Washington, March 8 - HSBC USA Inc. priced $2 million of 14.75% reverse convertible notes due Sept. 27, 2007 linked to the common stock of First BanCorp, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable at maturity.
At maturity, investors will receive par unless First BanCorp 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 First BanCorp shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | First BanCorp
|
| Amount: | $2 million
|
| Maturity: | Sept. 27, 2007
|
| Coupon: | 14.75%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless First BanCorp stock falls below $9.656 during the life of the notes and finishes below its initial price, in which case 82.85 shares of First BanCorp stock
|
| Initial share price: | $12.07
|
| Barrier price: | $9.656, 80% of $12.07
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Agent fee: | 2%
|
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