Published on 11/28/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $744,000 of 8.5% notes linked to St. Jude
By Laura Lutz
Washington, Nov. 28 - HSBC USA Inc. priced a $744,000 issue of 8.5% reverse convertible notes due Nov. 30, 2007 linked to St. Jude Medical, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless St. Jude stock falls below the barrier price of $29.52 during the life of the notes and finishes below its initial price, in which case payout will be a number of St. Jude 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: | St. Jude Medical, Inc.
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Amount: | $744,000
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Maturity: | Nov. 30, 2007
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Coupon: | 8.5%, paid quarterly
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Price: | Par
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Payout at maturity: | Par in cash unless St. Jude stock falls below $29.52 during the life of the notes and finishes below its initial price, in which case 27.10027 shares of St. Jude stock
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Initial share price: | $36.90
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Barrier price: | $29.52, 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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