Published on 5/25/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $0.475 million of 25% reverse convertibles linked to Spectrum Brands
By Jennifer Chiou
New York, May 25 - HSBC USA Inc. priced $0.475 million of 25% annualized reverse convertible notes due Aug. 29, 2007 linked to the common stock of Spectrum Brands, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless Spectrum Brands stock falls below the protection price - 70% 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 Spectrum Brands 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: | Spectrum Brands, Inc.
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Amount: | $0.475 million
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Maturity: | Aug. 29, 2007
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Coupon: | 25% annualized, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Spectrum Brands stock falls below $5.71 during the life of the notes and finishes below its initial share price, in which case shares of Spectrum Brands equal to $1,000 divided by the initial share price
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Initial share price: | $8.15
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Protection price: | $5.71, 70% of $8.15
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Pricing date: | May 24
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Settlement date: | May 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.25%
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