Published on 7/6/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $1.524 million 14% reverse convertibles linked to four stocks
By Jennifer Chiou
New York, July 6 - HSBC USA Inc. priced $1.524 million of 14% annualized reverse convertible notes due Jan. 10, 2008 linked to an equally weighted basket of stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket will include the common stocks of Amazon.com, Inc., Under Armour, Inc. and United States Steel Corp. and the American Depositary Shares of Elan Corp. plc.
Interest will be payable monthly.
For each component stock, the payout at maturity will be $250 unless that stock falls below its barrier price - 75% 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 $250 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 four components.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying securities: | Common stocks of Amazon.com, Inc., Under Armour, Inc. and United States Steel Corp. and the American Depositary Shares of Elan Corp. plc., equally weighted
|
| Amount: | $1.524 million
|
| Maturity: | Jan. 10, 2008
|
| Coupon: | 14% annualized, 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; $250 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: | Amazon.com at $68.73, Under Armour at $54.30, United States Steel at $112.56 and Elan at $21.94
|
| Barrier prices: | Amazon.com at $51.548, Under Armour at $40.725, United States Steel at $84.42 and Elan at $16.455, 75% of the initial level
|
| Pricing date: | July 5
|
| Settlement date: | July 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
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