By Jennifer Chiou
New York, April 24 - HSBC Bank USA NA priced $1 million of 14.8% reverse convertible notes due July 30, 2007 linked to Apple, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable at maturity.
The payout at maturity, in addition to interest, will be par in cash if Apple stock stays at or above the protection price, 85% of the initial share price of $93.51, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in Apple stock, with the number of shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC Bank USA NA
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Apple, Inc.
|
| Amount: | $1 million
|
| Maturity: | July 30, 2007
|
| Coupon: | 14.8%, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Apple stock stays at or above the protection price of $79.48 during the life of the notes or finishes at or above the initial share price; otherwise, 10.69404 Apple shares
|
| Initial share price: | $93.51
|
| Protection price: | $79.48, 85% of $93.51
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Agent fees: | 1.25%
|
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