By Laura Lutz
Des Moines, Dec. 14 - HSBC USA Inc. priced $1.03 million of 9.1% reverse convertible notes due Dec. 17, 2008 linked to the common stock of Lehman Brothers Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Lehman Brothers stock falls below the protection price - 50% 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 Lehman Brothers shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
HSBC Securities (USA) Inc. will be the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Lehman Brothers Holdings Inc. (Symbol: LEH)
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Amount: | $1,025,000
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Maturity: | Dec. 17, 2008
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Coupon: | 9.1%, paid monthly
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Price: | Par
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Payout at maturity: | If Lehman Brothers stock falls below $30.685 during the life of the notes and finishes below its initial price, shares of Lehman Brothers equal to par divided by the initial price; otherwise, par
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Initial price: | $61.37
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Barrier price: | $30.685, 50% of $61.37
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Pricing date: | Dec. 13
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Settlement date: | Dec. 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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