Published on 9/10/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $285,000 of 14% reverse convertibles linked to Blackstone
By Jennifer Chiou
New York, Sept. 10 - HSBC USA Inc. priced a $285,000 issue of 14% reverse convertible notes due March 12, 2008 linked to the common stock of Blackstone Group LP, 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 - 65% 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 Blackstone Group 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: | Blackstone Group LP (Symbol: BX)
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Amount: | $285,000
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Maturity: | March 12, 2008
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Coupon: | 14%, 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 $14.001 during the life of the notes and finishes below its initial price, in which case the payout will be a number of Blackstone Group shares equal to $1,000 divided by the initial price
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Initial share price: | $21.54
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Barrier price: | $14.001, 65% of the initial price
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Pricing date: | Sept. 7
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Settlement date: | Sept. 12
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.25%
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