New Issue: HSBC USA sells $2.83 million 11.25% notes linked to Halliburton

By Angela McDaniels

Seattle, Nov. 22 - HSBC USA Inc. priced a $2.83 million issue of reverse convertible notes due May 24, 2007 linked to Halliburton Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5.625% for an annualized rate of 11.25%.

The payout at maturity will be par in cash unless Halliburton stock falls below the barrier price of $26.13 during the life of the notes and finishes below its initial price, in which case payout will be a number of Halliburton shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Halliburton Co.
Amount:	$2.83 million
Maturity:	May 24, 2007
Coupon:	11.25%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Halliburton stock falls below $26.13 during the life of the notes and finishes below its initial price, in which case 30.61849 shares of Halliburton stock
Initial share price:	$32.66
Barrier price:	$26.13, 80% of initial share price
Pricing date:	Nov. 21
Settlement date:	Nov. 27
Agent:	HSBC Securities (USA) Inc.
Agent fee:	2.25%

© 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.