Published on 10/19/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $1.28 million 12% reverse convertibles linked to five stocks
By Jennifer Chiou
New York, Oct. 19 - HSBC USA Inc. priced $1.28 million of 12% annualized reverse convertible notes due April 23, 2008 linked to an equally weighted basket of five stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are Gol Linhas Aéreas Inteligentes SA, Headwaters Inc., Collective Brands, Inc., Sepracor Inc. and Imperial Sugar Co.
Interest is payable monthly.
For each stock, the payout at maturity will be $200.00 unless that stock falls below its barrier price - 65% of its initial share price - during the life of the notes and finishes below its initial share price, in which case the payout for that stock will be a number of its shares equal to $200.00 divided by the initial share price or, at HSBC's option, the equivalent cash value.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Reverse convertible notes
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| Underlying stocks: | Gol Linhas Aéreas Inteligentes SA (Symbol: GOL), Headwaters Inc. (Symbol: HW), Collective Brands, Inc. (Symbol: PSS), Sepracor Inc. (Symbol: SEPR), Imperial Sugar Co. (Symbol: IPSU)
|
| Amount: | $1.28 million
|
| Maturity: | April 23, 2008
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| Coupon: | 12% annualized, payable monthly
|
| Price: | Par
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| Payout at maturity: | If a stock falls below its barrier price during the life of the notes and finishes below its initial share price, a number of shares of that stock equal to $200.00 divided by its initial share price; $200.00 for each stock that remains at or above its barrier price during the life of the notes or finishes at or above its initial share price
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| Initial share prices: | $26.18 for Gol Linhas Aéreas Inteligentes, $14.59 for Headwaters, $18.88 for Collective Brands, $24.89 for Sepracor, $27.54 for Imperial Sugar
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| Barrier prices: | $17.017 for Gol Linhas Aéreas Inteligentes, $9.4835 for Headwaters, $12.272 for Collective Brands, $16.1785 for Sepracor, $17.901 for Imperial Sugar
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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