Published on 2/27/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $1 million 13.5% notes linked to JetBlue
By Angela McDaniels
Seattle, Feb. 27 - HSBC USA Inc. priced a $1 million offering of reverse convertible notes due Aug. 28, 2007 linked to the common stock of JetBlue Airways Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.75% for an annualized rate of 13.5%. Interest is payable quarterly.
The payout at maturity will be par unless JetBlue stock falls below the barrier price of $9.16 during the life of the notes and finishes below the initial share price of $13,08, in which case the payout will be a number of JetBlue shares equal to $1,000 divided by the initial share price.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | JetBlue Airways Corp.
|
| Amount: | $1 million
|
| Maturity: | Aug. 28, 2007
|
| Coupon: | 13.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If JetBlue falls below the barrier price during the life of the notes and finishes below the initial share price, 76.4526 JetBlue shares; otherwise, par
|
| Initial share price: | $13.08
|
| Barrier price: | $9.16, 70% of $13.08
|
| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Agent fees: | 2%
|
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