Published on 10/31/2006 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $1 million 10% reverse convertibles linked to stock basket
By Jennifer Chiou
New York, Oct. 31 - Credit Suisse (USA), Inc. priced $1 million of 10% reverse convertible securities due Nov. 6, 2007 linked to a stock basket, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying basket contains equal weights of the shares of ImClone Systems, Inc.; Hovnanian Enterprises, Inc.; Waterford International Ltd.; Watts Water Technologies, Inc.; and Petmed Express, Inc.
Payment at maturity will be determined according to the performance of each stock. If any of the stocks trades at or below the knock-in price, 69% of its initial level, and closes below its initial price, investors will receive a number of shares of the that stock equal to $1,000 divided by the initial stock price and multiplied by 0.2, the weighting of each component.
Otherwise, investors will receive par in cash.
| Issuer: | Credit Suisse Securities (USA), Inc.
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| Issue: | Reverse convertible securities
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| Underlying stocks: | 20% each of ImClone Systems, Inc.; Hovnanian Enterprises, Inc.; Waterford International Ltd.; Watts Water Technologies, Inc.; and Petmed Express, Inc.
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| Amount: | $1 million
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| Maturity: | Nov. 6, 2007
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| Coupon: | 10%, payable monthly
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| Price: | Par
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| Payout at maturity: | For each basket component, par unless the stock falls below the knock-in price, 69% of the initial price, during the life the notes and finishes below its initial value, in which case payout will be a number of shares of the worst performing stock equal to $200 divided by the initial stock price.
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| Initial prices: | $31.39 for ImClone; $31.15 for Hovnanian; $40.67 for Waterford; $37.10 for Watts; $12.45 for Petmed
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| Knock-in prices: | 69% of initial prices: $21.6591 for ImClone; $21.4935 for Hovnanian; $28.0623 for Waterford; $25.599 for Watts; $8.5905 for Petmed
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| Pricing date: | Oct. 31
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| Settlement date: | Nov. 6
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| Agent: | Credit Suisse Securities (USA) LLC
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| Agent fee: | 3%
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