Published on 10/24/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $0.496 million 15% reverse convertibles linked to AMR
By Jennifer Chiou
New York, Oct. 24 - HSBC USA Inc. priced a $0.496 million issue of 15% reverse convertible notes due Jan. 26, 2007 linked to AMR Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless AMR stock declines by 30% or more during the life of the notes and it finishes below the initial price, in which case investors will receive a number of AMR shares equal to $1,000 divided by the initial price.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | AMR Corp.
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Amount: | $0.496 million
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Maturity: | Jan. 26, 2007
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Coupon: | 15%
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Price: | Par
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Payout at maturity: | Par unless AMR stock falls by 30% or more during the life of the notes and it finishes below the initial price, in which case a number of AMR shares equal to $1,000 divided by the initial price
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Initial price: | $27.70
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Barrier price: | $19.39, 70% of the initial price
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Pricing date: | Oct. 20
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Settlement date: | Oct. 26
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Agent: | HSBC Securities (USA) Inc.
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