Published on 11/29/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.11 million 15.85% reverse convertibles linked to Merrill Lynch
By Laura Lutz
Des Moines, Nov. 29 - HSBC USA Inc. priced $1.11 million of 15.85% reverse convertible notes due March 3, 2008 linked to the common stock of Merrill Lynch & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Merrill Lynch stock falls below the protection price - 60% 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 Merrill Lynch 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.
|
Issue: | Reverse convertible notes
|
Underlying stock: | Merrill Lynch & Co., Inc. (Symbol: MER)
|
Amount: | $1,106,000
|
Maturity: | March 3, 2008
|
Coupon: | 15.85%, paid monthly
|
Price: | Par
|
Payout at maturity: | If Merrill Lynch stock falls below $31.842 during the life of the notes and finishes below its initial price, shares of Merrill Lynch equal to par divided by the initial price; otherwise, par
|
Initial price: | $53.07
|
Barrier price: | $31.842, 60% of $53.07
|
Pricing date: | Nov. 27
|
Settlement date: | Nov. 30
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 2.5%
|
© 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.