Published on 9/28/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $253,000 of 10.5% reverse convertibles linked to Newmont
Laura Lutz
Des Moines, Sept. 28 - HSBC USA Inc. priced a $253,000 issue of 10.5% reverse convertible notes due Sept. 28, 2007 linked to Newmont Mining Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Newmont stock falls below the barrier price of $35.21 during the life of the notes and finishes below its initial price on the valuation day, Sept. 25, 2007, in which case payout will be a number of Newmont 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: | Newmont Mining Corp.
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Amount: | $253,000
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Maturity: | Sept. 28, 2007
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Price: | Par
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Coupon: | 10.5%, paid quarterly
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Payout at maturity: | If Newmont falls below $35.21 during the life of the notes and finishes below its initial price, shares of Newmont stock equal to $1,000 divided by the initial price; otherwise, par in cash
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Initial share price: | $44.01
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Barrier price: | $35.21, 80% of initial share price
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Pricing date: | Sept. 26
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Settlement date: | Sept. 29
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Agent: | HSBC Securities (USA) Inc.
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