Published on 11/22/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $3.379 million 14% reverse convertibles linked to Qualcomm
By Angela McDaniels
Seattle, Nov. 22 - HSBC USA Inc. priced a $3.379 million issue of reverse convertible notes due May 24, 2007 linked to Qualcomm Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 7% for an annualized rate of 14%.
The payout at maturity will be par in cash unless Qualcomm stock falls below the barrier price of $30.09 during the life of the notes and finishes below its initial price, in which case payout will be a number of Qualcomm shares equal to $1,000 divided by the initial share price.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Qualcomm Inc.
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Amount: | $3.379 million
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Maturity: | May 24, 2007
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Coupon: | 14%, paid monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Qualcomm stock falls below $30.09 during the life of the notes and finishes below its initial price, in which case 26.58867 shares of Qualcomm stock
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Initial share price: | $37.61
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Barrier price: | $30.09, 80% of initial share price
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Pricing date: | Nov. 21
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Settlement date: | Nov. 27
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 2.25%
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