Published on 8/6/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1 million 6.34% reverse convertibles linked to Honeywell International
New York, Aug. 6 - HSBC USA Inc. priced $1 million of 6.34% reverse convertible notes due Feb. 9, 2009 linked to Honeywell International Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Honeywell International shares fall below the protection price of $31.3472, 62% of the initial price of $50.56, during the life of the notes and finish below the initial price in which case the payout will be Honeywell International 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: | Honeywell International Inc. (Symbol: HON)
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Amount: | $1 million
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Maturity: | Feb. 9, 2009
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Coupon: | 6.34%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Honeywell International shares fall below the protection price of $31.3472, 62% of the initial price, and finish below the initial price, in which case Honeywell International shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $50.56
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Protection price: | $31.3472, 62% of $50.56
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Pricing date: | Aug. 4
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Settlement date: | Aug. 7
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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