Published on 7/30/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $0.52 million 16% reverse convertibles linked to Tesoro
New York, July 30 - HSBC USA Inc. priced $0.52 million of 16% reverse convertible notes due Oct. 30, 2008 linked to Tesoro Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Tesoro shares fall below the protection price of $9.18, 60% of the initial price of $15.30, during the life of the notes and finish below the initial price in which case the payout will be Tesoro 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: | Tesoro Corp. (Symbol: TSO)
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Amount: | $0.52 million
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Maturity: | Oct. 30, 2008
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Coupon: | 16%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Tesoro shares fall below the protection price of $9.18, 60% of the initial price, and finish below the initial price, in which case Tesoro shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $15.30
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Protection price: | $9.18, 60% of $15.30
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Pricing date: | July 28
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Settlement date: | July 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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