By Angela McDaniels
Seattle, June 21 - HSBC USA Inc. priced $719,000 of reverse convertible notes due Dec. 26, 2007 linked to a basket of five stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Evergreen Solar, Inc.; InterOil Corp.; Take-Two Interactive Software, Inc. and Zoltek Cos., Inc. and the American Depositary Shares of Elan Corp. plc. The basket components are equally weighted.
The six-month notes will pay 7.5% for an annualized rate of 15%. Interest is payable monthly.
For each component stock, the payout at maturity will be $200 unless that stock falls below its barrier price - 70% 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 component stock will be a number of its shares equal to $200 divided by the initial share price or, at HSBC USA's option, the equivalent cash value.
The total payout at maturity will be equal to the sum of the payouts for the five components.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | Evergreen Solar, Inc.; InterOil Corp.; Take-Two Interactive Software, Inc.; Zoltek Cos., Inc.; and Elan Corp. plc, equally weighted
|
| Amount: | $719,000
|
| Maturity: | Dec. 26, 2007
|
| Coupon: | 15%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If a component stock falls below its barrier price during the life of the notes and finishes below the initial share price, a number of shares of that stock equal to $1,000 divided by its initial share price; $200 for each component stock that remains at or above its barrier price during the life of the notes or finishes at or above its initial share price
|
| Initial share prices: | $9.15 for Evergreen; $42.30 for InterOil; $20.65 for Take-Two; $41.65 for Zoltek; $21.13 for Elan
|
| Barrier prices: | $6.405 for Evergreen; $29.61 for InterOil; $14.455 for Take-Two; $29.155 for Zoltek; $14.791 for Elan
|
| Pricing date: | June 20
|
| Settlement date: | June 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.875%
|
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