Published on 8/21/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $750,000 40.75% reverse convertibles linked to InterOil
By Susanna Moon
Chicago, Aug. 21 - HSBC USA Inc. priced a $750,000 issue of 40.75% annualized reverse convertible notes due Nov. 26, 2007 linked to the common stock of InterOil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable at maturity.
At maturity, investors will receive par unless the stock falls below the barrier price - 60% 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 InterOil shares equal to $1,000 divided by the initial share price, or at the bank's option, the cash equivalent.
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: | InterOil Corp. (Amex: IOC)
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Amount: | $750,000
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Maturity: | Nov. 26, 2007
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Coupon: | 40.75%, payable at maturity
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Price: | Par
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Payout at maturity: | Par unless the stock falls below the barrier price during the life of the notes and finishes below its initial price, in which case the payout will be a number of InterOil shares equal to $1,000 divided by the initial price, or at the bank's option, the cash equivalent
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Initial share price: | $36.70
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Barrier price: | $22.02, or 60% of the initial price
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Pricing date: | Aug. 20
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Settlement date: | Aug. 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.4%
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