By E. Janene Geiss
Philadelphia, Aug. 29 - HSBC USA Inc. priced $2.008 million of reverse convertible notes due Dec. 3, 2007 linked to the Blackstone Group LP stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 5% for an annual interest rate of 20%. Interest is payable monthly.
The payout at maturity will be par in cash if Blackstone stock stays at or above the protection price, 80% of the initial share price of $23.04, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in Blackstone stock, with the number of 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: | The Blackstone Group LP (NYSE: BX)
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Amount: | $2.008 million
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Maturity: | Dec. 3, 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 if Blackstone stock stays at or above the protection price of $18.432 during the life of the notes or finishes at or above the initial share price; otherwise, 43 Blackstone shares
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Initial share price: | $23.04
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Protection price: | $18.432, 80% of $23.04
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Pricing date: | Aug. 28
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Settlement date: | Aug. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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