Published on 5/30/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $242,000 15.3% reverse convertibles linked to SunPower
By Jennifer Chiou
New York, May 30 - HSBC USA Inc. priced $242,000 of 15.3% annualized reverse convertible notes due Sept. 2, 2008 linked to SunPower Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless SunPower stock falls below the protection price of $53.638, 65% of the initial price of $82.52, during the life of the notes and finishes below the initial price in which case the payout will be SunPower shares equal to $1,000 principal amount divided by the initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | SunPower Corp. (Symbol: SPWR)
|
| Amount: | $242,000
|
| Maturity: | Sept. 2, 2008
|
| Coupon: | 15.3%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless SunPower stock falls below the protection price of $53.638, 65% of the initial price, and finishes below the initial price, in which case SunPower shares equal to $1,000 principal amount divided by the initial price
|
| Initial price: | $82.52
|
| Protection price: | $53.638, 65% of $82.52
|
| Pricing date: | May 27
|
| Settlement date: | May 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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