Published on 12/22/2006 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $1.665 million 10.2% notes linked to Sunoco stock
By Laura Lutz
Washington, Dec. 22 - HSBC USA Inc. priced a $1.665 million issue of 10.2% reverse convertible notes due June 26, 2007 linked to Sunoco, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Sunoco stock falls below the barrier price of $50.75 during the life of the notes and finishes below its initial price, in which case payout will be a number of Sunoco 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: | Sunoco, Inc.
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Amount: | $1.665 million
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Maturity: | June 26, 2007
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Coupon: | 10.2%, paid quarterly
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Price: | Par
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Payout at maturity: | Par in cash unless Sunoco stock falls below $50.75 during the life of the notes and finishes below its initial price, in which case $1,000 divided by the initial price shares of Sunoco stock
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Initial share price: | $63.44
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Barrier price: | $50.75, 80% of initial share price
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Pricing date: | Dec. 21
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Settlement date: | Dec. 27
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Agent: | HSBC Securities (USA) Inc.
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Agent fee: | 1.75%
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