By Laura Lutz
Des Moines, June 26 - HSBC USA Inc. priced $1.81 million of 20% reverse convertible notes due Sept. 27, 2007 linked to the common stock of Evergreen Energy Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless Evergreen Energy 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 Evergreen Energy shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. will be the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Evergreen Energy Inc.
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Amount: | $1.81 million
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Maturity: | Sept. 27, 2007
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Coupon: | 20%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Evergreen Energy stock falls below $4.263 during the life of the notes and finishes below its initial price, in which case shares of Evergreen Energy equal to $1,000 divided by the initial price
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Initial share price: | $6.09
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Barrier price: | $4.263, 70% of $6.09
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Pricing date: | June 22
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Settlement date: | June 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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