Published on 4/27/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.381 million 25.25% reverse convertibles linked to Elan
By Laura Lutz
Des Moines, April 27 - HSBC USA Inc. priced $1.381 million of 25.25% reverse convertible notes due July 30, 2007 linked to the common stock of Elan Corp., plc, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless Elan stock falls below the protection price - 85% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Elan shares equal to $1,000 divided by the initial share price.
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: | Elan Corp., plc
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Amount: | $1.381 million
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Maturity: | July 30, 2007
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Coupon: | 25.25%, paid monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Elan stock falls below $12.21 during the life of the notes and finishes below its initial share price, in which case shares of Elan equal to $1,000 divided by the initial share price
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Initial share price: | $14.37
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Protection price: | $12.21, 85% of $14.37
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Pricing date: | April 25
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Settlement date: | April 30
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 2.25%
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