Published on 7/25/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $111,000 of 14% reverse convertibles linked to Allegheny Technologies
By Laura Lutz
Des Moines, July 25 - HSBC USA Inc. priced $111,000 of 14% reverse convertible notes due Jan. 29, 2008 linked to the common stock of Allegheny Technologies Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless Allegheny Technologies 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 Allegheny Technologies 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: | Allegheny Technologies Inc.
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Amount: | $111,000
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Maturity: | Jan. 29, 2008
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Coupon: | 14%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Allegheny Technologies stock falls below $88.16 during the life of the notes and finishes below its initial price, in which case shares of Allegheny Technologies equal to $1,000 divided by the initial price
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Initial share price: | $110.20
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Barrier price: | $88.16, 80% of $110.20
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Pricing date: | July 24
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Settlement date: | July 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.25%
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