By Angela McDaniels
Seattle, March 27 - HSBC USA Inc. priced a $1.31 million offering of reverse convertible notes due June 28, 2007 linked to the common stock of Evergreen Energy Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 5.5% for an annualized rate of 22%. Interest is payable monthly.
The payout at maturity will be par unless Evergreen Energy stock falls below the barrier price of $4.29 during the life of the notes and finishes below the initial share price of $6.60, in which case the payout will be a number of Evergreen Energy shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Reverse convertible notes
|
Underlying stock: | Evergreen Energy Inc.
|
Amount: | $1.31 million
|
Maturity: | June 28, 2007
|
Coupon: | 22%, payable monthly
|
Price: | Par
|
Payout at maturity: | If Evergreen Energy stock falls below the barrier price during the life of the notes and finishes below the initial share price, 151.51515 Evergreen Energy shares; otherwise, par
|
Initial share price: | $6.60
|
Barrier price: | $4.29, 65% of initial share price
|
Pricing date: | March 23
|
Settlement date: | March 28
|
Agent: | HSBC Securities (USA) Inc.
|
Agent fees: | 2.25%
|
|
© 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.