By Laura Lutz
Des Moines, Dec. 27 - HSBC USA Inc. priced $436,000 of 27.2% down & in worst of reverse convertible notes due June 30, 2008 linked to a stock basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Altria Group, Inc.; Citigroup Inc.; AT&T Inc.; Pfizer Inc.; JPMorgan Chase & Co.; Merck & Co., Inc.; General Electric Co.; Verizon Communications Inc.; General Motors Corp.; and E.I. du Pont de Nemours and Co.
Interest is payable monthly.
The payout at maturity will be determined according to the performance of all of the reference stocks during the life of the notes. If the market price of any stock falls below its protection price - 60% of the initial price - during the life of the notes and any stock finishes below its initial price, the payout at maturity will be a number of shares of the worst-performing stock equal to par divided by that stock's initial price.
Otherwise, the payout will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Down & in worst of reverse convertible notes
|
| Underlying stocks: | Altria Group, Inc. (Symbol: MO); Citigroup Inc. (Symbol: C); AT&T Inc. (Symbol: T); Pfizer Inc. (Symbol: PFE); JPMorgan Chase & Co. (Symbol: JPM); Merck & Co., Inc. (Symbol: MRK); General Electric Co. (Symbol: GE); Verizon Communications Inc. (Symbol: VZ); General Motors Corp. (Symbol: GM); and E.I. du Pont de Nemours and Co. (Symbol: DD)
|
| Amount: | $436,000
|
| Maturity: | June 30, 2008
|
| Coupon: | 27.2%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls below its protection price during the life of the notes and any stock finishes below its initial price; in that case, a number of the worst-performing shares equal to $1,000 divided by its initial price
|
| Initial prices: | $77.43 for Altria; $30.24 for Citigroup; $41.48 for AT&T; $23.24 for Pfizer; $44.11 for JPMorgan; $59.15 for Merck; $37.14 for GE; $44.32 for Verizon; $26.64 for GM; $45.35 for DuPont
|
| Protection prices: | $46.458 for Altria; $18.144 for Citigroup; $24.888 for AT&T; $13.944 for Pfizer; $26.466 for JPMorgan; $35.49 for Merck; $22.284 for GE; $26.592 for Verizon; $15.984 for GM; $27.21 for DuPont; 60% of initial prices
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
© 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.
