New Issue: HSBC prices $525,000 of 25% reverse convertibles linked to Elan

By Laura Lutz

Des Moines, Sept. 27 - HSBC USA Inc. priced $525,000 of 25% reverse convertible notes due March 28, 2008 linked to American Depositary Shares of Elan Corp., plc, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

At maturity, investors will receive par unless Elan ADSs falls below the protection price - 70% of the initial share price - during the life of the notes and finish below the initial price, in which case the payout will be a number of Elan ADSs equal to $1,000 divided by the initial price.

HSBC Securities (USA) Inc. will be the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	American Depositary Shares of Elan Corp., plc (Symbol: ELN)
Amount:	$525,000
Maturity:	March 28, 2008
Coupon:	25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Elan ADSs falls below $14.455 during the life of the notes and finish below the initial price, in which case ADSs of Elan equal to $1,000 divided by the initial price
Initial price:	$20.65
Barrier price:	$14.455, 70% of $20.65
Pricing date:	Sept. 25
Settlement date:	Sept. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.