By Susanna Moon
Chicago, Oct. 26 - HSBC USA Inc. priced a $704,000 issue of 10.5% down & in worst of reverse convertible notes due Sept. 26, 2008 linked to two stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying securities are the common stocks of General Electric Co. and Proctor & Gamble Co.
Interest is payable monthly.
The payout will be based on the performance of both reference assets during the life of the notes. At maturity, investors will receive par unless the market price of any stock falls below the protection price - 85% of the initial price - during the life of the notes and finishes below the initial price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by its initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Down & in worst of reverse convertible notes
|
| Amount: | $704,000
|
| Underlying shares: | General Electric Co. (NYSE: GE), Proctor & Gamble Co. (NYSE: PG)
|
| Maturity: | Sept. 26, 2008
|
| Coupon: | 10.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls below its protection price during the life of the notes and finishes below its initial price; in that case, a number of the worst-performing shares equal to $1,000 divided by its initial price
|
| Initial prices: | $40.16 for General Electric; $71.35 for Proctor & Gamble
|
| Protection prices: | 85% of initial prices; $34.136 for General; $60.6475 for Proctor & Gamble
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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