Published on 10/30/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.155 million 21% reverse convertibles linked to Vmware
By E. Janene Geiss
Philadelphia, Oct. 30 - HSBC USA Inc. priced $1,155,000 of reverse convertible notes due April 30, 2008 linked to the stock of Vmware, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 10.5% for an annualized rate of 21%. Interest will be payable monthly.
At maturity, investors will receive par unless the stock falls below the barrier price - 70% 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 Vmware 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: | Vmware, Inc. (Symbol: VMW)
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Amount: | $1,155,000
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Maturity: | April 30, 2008
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Coupon: | 21%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below $78.4630 during the life of the notes and finishes below its initial price, in which case a number of Indymac shares equal to $1,000 divided by the initial price
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Initial share price: | $112.09
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Barrier price: | $78.4630, or 70% of $112.09
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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: | 2.25%
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