By Jennifer Chiou
New York, April 29 - HSBC USA Inc. priced $100,000 of 13% annualized reverse convertible notes due Oct. 30, 2008 linked to the Financial Select Sector SPDR exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
At maturity, investors will receive par unless the fund shares fall below the protection price - 80% of its 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 shares equal to par divided by the initial price.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying fund: | Financial Select Sector SPDR
|
| Amount: | $100,000
|
| Maturity: | Oct. 30, 2008
|
| Coupon: | 13%
|
| Price: | Par
|
| Payout at maturity: | Par unless the shares fall below 80% of initial price and finish below the initial price, in which case number of shares equal to par divided by the initial price
|
| Initial price: | $26.95
|
| Barrier price: | $21.56, 80% of initial price
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
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