Published on 7/21/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2 million 12% reverse convertibles linked to XTO Energy
New York, July 21 - HSBC USA Inc. priced $2 million of 12% reverse convertible notes due July 23, 2009 linked to XTO Energy Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless XTO Energy shares fall below the protection price of $33.726, 60% of the initial price of $56.21, during the life of the notes and finish below the initial price in which case the payout will be XTO Energy 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: | XTO Energy Inc. (Symbol: XTO)
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Amount: | $2 million
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Maturity: | July 23, 2009
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Coupon: | 12%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless XTO Energy shares fall below the protection price of $33.726, 60% of the initial price, and finish below the initial price, in which case XTO Energy shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $56.21
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Protection price: | $33.726, 60% of $56.21
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Pricing date: | July 18
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Settlement date: | July 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.4%
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