HSBC to price 26% down & in worst of reverse convertibles linked to stock basket

By Angela McDaniels

Tacoma, Wash., Nov. 6 - HSBC USA Inc. plans to price down & in worst of reverse convertible notes due May 30, 2008 linked to a basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 13% for an annualized rate of 26%. Interest will be payable monthly.

The basket will include the common stocks of Altria Group, Inc., AT&T Inc., Citigroup Inc., E.I. du Pont de Nemours and Co., General Electric Co., General Motors Corp., JPMorgan Chase & Co., Merck & Co., Inc., Pfizer Inc. and Verizon Communications Inc.

The payout at maturity will be par unless any stock falls below its barrier price - 65% of its initial share price - during the life of the notes and the worst-performing stock finishes below its initial share price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by its initial share price.

The notes are expected to price on Nov. 27 and settle on Nov. 30.

HSBC Securities (USA) Inc. will be 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.