By Laura Lutz
Des Moines, Sept. 27 - HSBC USA Inc. priced $3.64 million of 17% reverse convertible notes due Dec. 31, 2007 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless Freeport-McMoRan stock falls below the protection price - 75% 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 Freeport-McMoRan 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: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
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Amount: | $3.64 million
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Maturity: | Dec. 31, 2007
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Coupon: | 17%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Freeport-McMoRan stock falls below $78.9075 during the life of the notes and finishes below its initial price, in which case shares of Freeport-McMoRan equal to $1,000 divided by the initial price
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Initial share price: | $105.21
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Barrier price: | $78.9075, 75% of $105.21
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Pricing date: | Sept. 25
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Settlement date: | Sept. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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