Published on 9/11/2006 in the Prospect News Convertibles Daily.
New Issue: HSBC USA prices $4 million 9% reverse convertibles linked to Popular
By Angela McDaniels
Seattle, Sept. 11 - HSBC USA Inc. priced a $4 million issue of 9% reverse convertible notes due Sept. 21, 2007 linked to Popular, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Popular stock falls by 10% or more during the life of the notes and finishes below its initial price on the valuation day, Sept. 18, 2007, in which case payout will be a number of Popular 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: | Popular, Inc.
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Amount: | $4 million
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Maturity: | Sept. 21, 2007
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Price: | Par
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Coupon: | 9%, paid monthly
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Payout at maturity: | Par in cash unless Popular falls below $17.109 during the life of the notes and finishes below its initial price; in which case, 52.60389 shares of Popular stock
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Initial share price: | $19.01
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Barrier price: | $17.109, 90% of initial share price
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Pricing date: | Sept. 7
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Settlement date: | Sept. 21
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Agent: | HSBC Securities (USA) Inc.
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