Published on 9/24/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $718,000 20.25% reverse convertibles linked to Lehman Brothers
By Angela McDaniels
Seattle, Sept. 24 - HSBC USA Inc. priced $718,000 of 20.25% reverse convertible notes due Dec. 27, 2007 linked to the common stock of Lehman Brothers Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Lehman Brothers stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Lehman Brothers 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: | Lehman Brothers Holdings Inc. (Symbol: LEH)
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Amount: | $718,000
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Maturity: | Dec. 27, 2007
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Coupon: | 20.25%, payable monthly
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Price: | Par
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Payout at maturity: | If Lehman Brothers stock falls below the barrier price during the life of the notes and the final share price is less than the initial share price, 15.94896 Lehman Brothers shares; otherwise, par
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Initial share price: | $62.70
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Barrier price: | $50.16, 80% of initial share price
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Pricing date: | Sept. 21
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Settlement date: | Sept. 26
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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