Published on 11/28/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $250,000 of 9.25% notes linked to Barrick
By Laura Lutz
Washington, Nov. 28 - HSBC USA Inc. priced a $250,000 issue of 9.25% reverse convertible notes due Nov. 30, 2007 linked to Barrick Gold Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Barrick stock falls below the barrier price of $23.80 during the life of the notes and finishes below its initial price, in which case payout will be a number of Barrick 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: | Barrick Gold Corp.
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Amount: | $250,000
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Maturity: | Nov. 30, 2007
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Coupon: | 9.25%, paid quarterly
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Price: | Par
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Payout at maturity: | Par in cash unless Barrick stock falls below $23.80 during the life of the notes and finishes below its initial price, in which case 33.61345 shares of Barrick stock
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Initial share price: | $29.75
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Barrier price: | $23.80, 80% of initial share price
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Pricing date: | Nov. 27
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Settlement date: | Nov. 30
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 2.25%
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