Published on 9/7/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $510,000 of 12.3% reverse convertibles linked to Las Vegas Sands
By Susanna Moon
Chicago, Sept. 7 - HSBC USA Inc. priced a $510,000 of 12.3% reverse convertible notes due March 13, 2008 linked to the common stock of Las Vegas Sands Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive par unless the stock falls below the barrier 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 Las Vegas Sands 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: | Las Vegas Sands Corp. (NYSE: LVS)
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Amount: | $510,000
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Maturity: | March 13, 2008
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Coupon: | 12.3%, payable monthly
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Price: | Par
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Payout at maturity: | Par unless the stock falls below the barrier price of $72.086 during the life of the notes and finishes below its initial price, in which case the payout will be a number of Las Vegas Sands shares equal to $1,000 divided by the initial price
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Initial share price: | $102.98
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Barrier price: | $72.086, or 70% of the initial price
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Pricing date: | Sept. 6
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Settlement date: | Sept. 11
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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