By Angela McDaniels
Seattle, July 18 - HSBC USA Inc. priced $3.269 million of reverse convertible notes due Oct. 22, 2007 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of IntercontinentalExchange, Inc., InterOil Corp., Crocs, Inc. and Taser International, Inc.
The three-month notes will pay 3.875% for an annualized rate of 15.5%. Interest is 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 will equal 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 stocks: | IntercontinentalExchange, Inc., InterOil Corp., Crocs, Inc. and Taser International, Inc., equally weighted
|
| Amount: | $3.269 million
|
| Maturity: | Oct. 22, 2007
|
| Coupon: | 15.5%, 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 its 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: | $166.85 for IntercontinentalExchange; $20.90 for InterOil; $46.08 for Crocs; $16.20 for Taser
|
| Barrier prices: | $125.1375 for IntercontinentalExchange; $15.675 for InterOil; $34.56 for Crocs; $12.15 for Taser
|
| Pricing date: | July 17
|
| Settlement date: | July 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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