Published on 7/25/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $512,000 of 12% reverse convertibles linked to Potash Corp. of Saskatchewan
By Laura Lutz
Des Moines, July 25 - HSBC USA Inc. priced $512,000 of 12% reverse convertible notes due July 29, 2008 linked to the common stock of Potash Corp. of Saskatchewan Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless Potash 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 Potash 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: | Potash Corp. of Saskatchewan Inc.
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Amount: | $512,000
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Maturity: | July 29, 2008
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Coupon: | 12%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Potash stock falls below $59.4375 during the life of the notes and finishes below its initial price, in which case shares of Potash equal to $1,000 divided by the initial price
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Initial share price: | $79.25
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Barrier price: | $59.4375, 75% of $79.25
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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: | 2.75%
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