Published on 10/1/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.8 million 22% reverse convertibles linked to Juniper
By Susanna Moon
Chicago, Oct. 1 - HSBC USA Inc. priced $1.8 million of 22% reverse convertible notes due Jan. 7, 2008 linked to the common stock of Juniper Networks, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless the 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 Juniper shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Juniper Networks, Inc. (Nasdaq: JNPR)
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Amount: | $1.8 million
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Maturity: | Jan. 7, 2008
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Coupon: | 22%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below $29.288 during the life of the notes and finishes below its initial share price, in which case shares of Juniper equal to $1,000 divided by the initial share price
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Initial share price: | $36.61
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Protection price: | $29.288, or 80% of initial share price
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Pricing date: | Sept. 28
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Settlement date: | Oct. 5
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.25%
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