Published on 11/21/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $1 million 12.35% notes linked to First BanCorp.
By Angela McDaniels
Seattle, Nov. 21 - HSBC USA Inc. priced a $1 million issue of 12.35% reverse convertible notes due May 25, 2007 linked to First BanCorp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless First BanCorp. stock falls below the barrier price of $7.78 during the life of the notes and finishes below its initial price of $9.72, in which case the payout will be a number of First BanCorp. shares equal to $1,000 divided by the initial price.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | First BanCorp.
|
| Amount: | $1 million
|
| Maturity: | May 25, 2007
|
| Coupon: | 12.35%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless First BanCorp. falls below $7.78 during the life of the notes and finishes below its initial price, in which case 102.88066 shares of First BanCorp. stock
|
| Initial share price: | $9.72
|
| Barrier price: | $7.78, 80% of initial share price
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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