HSBC to issue 20% reverse convertibles linked to stock basket

By Susanna Moon

Chicago, Oct. 2 - HSBC USA Inc. plans to price an issue of 20% reverse convertible notes due Jan. 7, 2008 linked to an equally weighted basket of four stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying stocks are Baidu.com, Inc., Dryships Inc., General Motors Corp. and Crocs, Inc.

Interest is payable monthly.

For each stock, the payout at maturity will be $250 unless that stock falls below its barrier price - 70% of its initial share price - during the life of the notes and finishes below its initial share price, in which case the payout for that stock will be a number of its shares equal to $250 divided by the initial share price or, at HSBC's option, the equivalent cash value.

The notes are expected to price on Oct. 2 and settle on Oct. 5.

HSBC Securities (USA) Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.