New Issue: HSBC USA prices $100,000 9.6% reverse convertibles linked to Oil Service HOLDRs

By Angela McDaniels

Tacoma, Wash., March 28 - HSBC USA Inc. priced $100,000 of 9.6% reverse convertible notes due Oct. 1, 2008 linked to the depositary receipts of the Oil Service HOLDRs trust, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the HOLDRs fall below the barrier price - 75% of the initial price - during the life of the notes and finish below the initial price, in which case the payout will be a number of HOLDRs equal to par divided by the initial price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying asset:	Oil Service HOLDRs trust depositary receipts (Amex: OIH)
Amount:	$100,000
Maturity:	Oct. 1, 2008
Coupon:	9.6%, payable monthly
Price:	Par
Payout at maturity:	If the HOLDRs fall below the barrier price during the life of the notes and finish below the initial price, 5.6676 HOLDRs; otherwise, par
Initial price:	$176.44
Barrier price:	$132.33, 75% of initial price
Pricing date:	March 26
Settlement date:	March 31
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.