By Laura Lutz
Des Moines, Dec. 10 - HSBC USA Inc. priced $691,000 of 16.7% reverse convertible notes due March 12, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Target stock falls below the barrier price - 75% 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 Target 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: | Target Corp. (Symbol: TGT)
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Amount: | $691,000
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Maturity: | March 12, 2008
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Coupon: | 16.7%, paid monthly
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Price: | Par
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Payout at maturity: | If Target stock falls below $41.6325 during the life of the notes and finishes below its initial price, shares of Target equal to par divided by the initial price; otherwise, par
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Initial price: | $55.51
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Barrier price: | $41.6325, 75% of $55.51
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Pricing date: | Dec. 7
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Settlement date: | Dec. 12
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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