Published on 4/27/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $196,000 14% reverse convertibles linked to Suntech Power
By Laura Lutz
Des Moines, April 27 - HSBC USA Inc. priced $196,000 of 14% reverse convertible notes due Oct. 30, 2007 linked to the American depositary shares of Suntech Power Holdings Co., Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless Suntech Power stock falls below the protection price - 75% 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 Suntech Power 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: | Suntech Power Holdings Co., Ltd. American depositary shares
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Amount: | $196,000
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Maturity: | Oct. 30, 2007
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Coupon: | 14%, paid monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Suntech Power stock falls below $28.94 during the life of the notes and finishes below its initial share price, in which case shares of Suntech Power equal to $1,000 divided by the initial share price
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Initial share price: | $38.59
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Protection price: | $28.94, 75% of $38.59
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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: | 2.5%
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