Published on 6/28/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $251,000 15.5% down & in worst of reverse convertibles linked to stock basket
By Jennifer Chiou
New York, June 28 - HSBC USA Inc. priced $251,000 of 15.5% annualized down & in worst of reverse convertible notes due Dec. 31, 2007 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The basket includes the stocks of Las Vegas Sands Corp., MGM Mirage and Wynn Resorts, Ltd.
The payout will be determined according to the performance of all reference assets during the life of the notes. At maturity, investors will receive par unless the final price of the worst-performing stock falls below the protection price - 75% 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 the worst-performing shares equal to $1,000 divided by the initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | Las Vegas Sands Corp., MGM Mirage and Wynn Resorts, Ltd.
|
| Amount: | $251,000
|
| Maturity: | Dec. 31, 2007
|
| Coupon: | 15.5% annualized, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless the final price of the worst-performing stock falls below the protection price - 75% 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 the worst-performing shares equal to $1,000 divided by the initial price
|
| Initial share prices: | Las Vegas Sands Corp. at $73.03, MGM Mirage at $83.72 and Wynn Resorts, Ltd. at $87.34
|
| Protection prices: | Las Vegas Sands Corp. at $54.7725, MGM Mirage at $62.79 and Wynn Resorts, Ltd. at $65.505, 75% of the initial prices
|
| Pricing date: | June 26
|
| Settlement date: | June 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
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