Published on 3/28/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.3 million 10.21% reverse convertibles linked to Western Union
New York, March 28 - HSBC USA Inc. priced $1.3 million of 10.21% reverse convertible notes due March 31, 2009 linked to Western Union Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash unless Western Union stock falls below the protection price of $14.623, 70% of the initial price of $20.89, during the life of the notes and finishes below the initial price in which case the payout will be Western Union shares equal to $1,000 principal amount divided by the initial price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Reverse convertible notes
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Underlying stock: | Western Union Co. (Symbol: WU)
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Amount: | $1.3 million
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Maturity: | March 31, 2009
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Coupon: | 10.21%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Western Union stock falls below the protection price of $14.623, 70% of the initial price, and finishes below the initial price, in which case Western Union shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $20.89
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Protection price: | $14.623, 70% of $20.89
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Pricing date: | March 27
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Settlement date: | March 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 4%
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