By Laura Lutz
Des Moines, Nov. 28 - HSBC USA Inc. priced $640,000 of 18% reverse convertible notes due May 30, 2008 linked to the common stock of the Bear Stearns Cos. Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Bear Stearns stock falls below the protection price - 70% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of Bear Stearns shares equal to par divided by the initial share price.
Otherwise, the payout will be par
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: | The Bear Stearns Cos. Inc. (Symbol: BSC)
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Amount: | $640,000
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Maturity: | May 30, 2008
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Coupon: | 18%, paid monthly
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Price: | Par
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Payout at maturity: | If Bear Stearns stock falls below $66.801 during the life of the notes and finishes below its initial price, shares of Bear Stearns equal to par divided by the initial price; otherwise, par
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Initial price: | $95.43
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Barrier price: | $66.801, 70% of $95.43
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Pricing date: | Nov. 20
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Settlement date: | Nov. 26
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.25%
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