New Issue: HSBC USA prices $874,000 14% reverse convertibles linked to Berkshire Hathaway

By Angela McDaniels

Tacoma, Wash. Nov. 26 - HSBC USA Inc. priced $847,000 of 14% reverse convertible notes due March 2, 2009 linked to the class B common stock of Berkshire Hathaway Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Berkshire Hathaway shares fall by more than 30% during the life of the notes and finish below the initial price, in which case the payout will be a number of Berkshire Hathaway shares equal to $1,000 divided by the initial price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Class B common stock of Berkshire Hathaway Inc. (Symbol: BRK/B)
Amount:	$874,000
Maturity:	March 2, 2009
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	If Berkshire Hathaway shares fall below protection price during life of notes and finish below initial price, 0.3111 Berkshire Hathaway shares; otherwise, par
Initial price:	$3,214.00
Protection price:	$2,249.80, 70% of initial price
Pricing date:	Nov. 25
Settlement date:	Nov. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

© 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.