Published on 11/26/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $400,000 11.3% reverse convertibles linked to Corning
By Susanna Moon
Chicago, Nov. 26 - HSBC USA Inc. priced $400,000 of 11.3% reverse convertible notes due May 26, 2008 linked to the stock of Corning Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is 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 Corning 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: | Corning Inc. (NYSE: GLW)
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Amount: | $400,000
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Maturity: | May 26, 2008
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Coupon: | 11.3%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below $13.32 during the life of the notes and finishes below its initial price, in which case 45.045 Corning shares
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Initial share price: | $22.20
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Barrier price: | $13.32, or 60% of initial share price
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Pricing date: | Nov. 21
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Settlement date: | Nov. 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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