Published on 4/27/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $167,000 10% reverse convertibles linked to Lyondell
By Laura Lutz
Des Moines, April 27 - HSBC USA Inc. priced $167,000 of 10% reverse convertible notes due April 30, 2008 linked to the common stock of Lyondell Chemical Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless Lyondell 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, in which case the payout will be a number of Lyondell 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: | Lyondell Chemical Co.
|
Amount: | $167,000
|
Maturity: | April 30, 2008
|
Coupon: | 10%, paid monthly
|
Price: | Par
|
Payout at maturity: | Par in cash unless Lyondell stock falls below $26.15 during the life of the notes and finishes below its initial share price, in which case shares of Lyondell equal to $1,000 divided by the initial share price
|
Initial share price: | $32.69
|
Protection price: | $26.15, 80% of $32.69
|
Pricing date: | April 25
|
Settlement date: | April 30
|
Agent: | HSBC Securities (USA) Inc.
|
Agent fee: | 3%
|
© 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.