By Laura Lutz
Iowa City, Jan. 22 - HSBC USA Inc. priced $2.281 million of 18.25% reverse convertible notes due April 27, 2007 linked to the common stock of Joy Global Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest will be payable at maturity.
At maturity, investors will receive par unless Joy Global stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Joy Global shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Joy Global Inc.
|
| Amount: | $2.281 million
|
| Maturity: | April 27, 2007
|
| Coupon: | 18.25%, paid quarterly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Joy stock falls below $37.56 during the life of the notes and finishes below its initial price, in which case 21.299 shares of Joy stock
|
| Initial share price: | $46.95
|
| Barrier price: | $37.56, 80% of $46.95
|
| Pricing date: | Jan. 19
|
| Settlement date: | Jan. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Agent fee: | 1.25%
|
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