By Susanna Moon
Chicago, Oct. 29 - HSBC USA Inc. priced $676,000 of 13% reverse convertible notes due April 30, 2008 linked to the common stock of AK Steel Holding Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless the stock falls below the barrier price - 60% 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 AK Steel shares equal to $1,000 divided by the initial share price.
Settlement is expected on Oct. 31.
HSBC Securities (USA) Inc. will be the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | AK Steel Holding Corp. (NYSE: AKS)
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Amount: | $676,000
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Maturity: | April 30, 2008
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Coupon: | 13%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below $31.926 during the life of the notes and finishes below its initial price, in which case a number of shares of AK Steel equal to $1,000 divided by the initial price
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Initial share price: | $53.21
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Barrier price: | $31.926, or 60% of initial share price
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.75%
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