Published on 9/26/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $0.868 million 16.25% reverse convertibles linked to Peabody Energy
By Jennifer Chiou
New York, Sept. 26 - HSBC USA Inc. priced a $0.868 million issue of 16.25% reverse convertible notes due March 29, 2007 linked to Peabody Energy Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Peabody Energy stock falls by 25% or more during the life of the notes and finishes below its initial price on the valuation day, March 26, 2007, in which case payout will be a number of Peabody Energy shares equal to $1,000 divided by the initial share price.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Peabody Energy Corp.
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Amount: | $0.868 million
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Maturity: | March 29, 2007
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Coupon: | 16.25%, paid monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Peabody Energy falls below $26.40 during the life of the notes and finishes below its initial price; in which case, $1,000 divided by the initial share price of Peabody Energy stock
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Initial share price: | $35.20
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Barrier price: | $26.40, 75% of initial share price
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Pricing date: | Sept. 25
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Settlement date: | Sept. 29
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Agent: | HSBC Securities (USA) Inc.
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