Published on 5/30/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $659,000 10.5% reverse convertibles linked to JPMorgan
By Jennifer Chiou
New York, May 30 - HSBC USA Inc. priced $659,000 of 10.5% annualized reverse convertible notes due Dec. 1, 2008 linked to JPMorgan Chase & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless JPMorgan stock falls below the protection price of $34.408, 80% of the initial price of $43.01, during the life of the notes and finishes below the initial price in which case the payout will be JPMorgan shares equal to $1,000 principal amount divided by the initial price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | JPMorgan Chase & Co. (Symbol: JPM)
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Amount: | $659,000
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Maturity: | Dec. 1, 2008
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Coupon: | 10.5%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless JPMorgan stock falls below the protection price of $34.408, 80% of the initial price, and finishes below the initial price, in which case JPMorgan shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $43.01
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Protection price: | $34.408, 80% of $43.01
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Pricing date: | May 27
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Settlement date: | May 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.2%
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