By Jennifer Chiou
New York, June 27 - HSBC Bank USA NA priced $3 million of 26.1% annualized reverse convertible notes due Oct. 2, 2007 linked to W.R. Grace & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable at maturity.
The payout at maturity, in addition to interest, will be par in cash if W.R. Grace stock stays at or above the protection price, 80% of the initial share price of $25.24, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in W.R. Grace stock, with the number of shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC Bank USA NA
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | W.R. Grace & Co.
|
| Amount: | $3 million
|
| Maturity: | Oct. 2, 2007
|
| Coupon: | 26.1% annualized, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par in cash if W.R. Grace stock stays at or above the protection price of $20.192 during the life of the notes or finishes at or above the initial share price; otherwise, a number of W.R. Grace shares equal to $1,000 divided by the initial share price
|
| Initial share price: | $25.24
|
| Protection price: | $20.192, 80% of $25.24
|
| Pricing date: | June 25
|
| Settlement date: | July 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.25%
|
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