By Laura Lutz
Des Moines, Dec. 20 - HSBC USA Inc. priced $1 million of 11.05% annualized reverse convertible notes due June 24, 2008 linked to the common stock of Wal-Mart Stores, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Wal-Mart stock falls below the protection price - 80% 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 Wal-Mart 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: | Wal-Mart Stores, Inc. (Symbol: WMT)
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Amount: | $1 million
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Maturity: | June 24, 2008
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Coupon: | 11.05%, paid monthly
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Price: | Par
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Payout at maturity: | If Wal-Mart stock falls below $38.464 during the life of the notes and finishes below its initial price, shares of Wal-Mart equal to par divided by the initial price; otherwise, par
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Initial price: | $48.08
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Barrier price: | $38.464, 80% of $48.08
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Pricing date: | Dec. 19
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Settlement date: | Dec. 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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