Published on 10/30/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $280,000 15% reverse convertibles linked to Peabody Energy
By E. Janene Geiss
Philadelphia, Oct. 30 - HSBC USA Inc. priced $280,000 of reverse convertible notes due April 30, 2008 linked to the stock of Peabody Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 7.5% for an annualized rate of 15%. Interest will be payable monthly.
At maturity, investors will receive par unless the stock falls below the barrier 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 Peabody Energy 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: | Peabody Energy Corp. (Symbol: BTU)
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Amount: | $280,000
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Maturity: | April 30, 2008
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Coupon: | 15%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below $46.344 during the life of the notes and finishes below its initial price, in which case a number of Peabody Energy shares equal to $1,000 divided by the initial price
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Initial share price: | $57.93
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Barrier price: | $46.344, or 80% of $57.93
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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: | 2.15%
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