Published on 3/6/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC issues $1.985 million 15% reverse convertibles linked to six stocks
By Jennifer Chiou
New York, March 6 - HSBC USA Inc. priced $1.985 million of 15% reverse convertible notes due Sept. 10, 2007 linked to a basket of six common stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket includes equal weights of Omnivision Technologies, Inc., Continental Airlines, Inc., Rambus Inc., Frontier Oil Corp., NYSE Group, Inc. and Elan Corp., plc.
Interest will be payable monthly.
At maturity, investors will receive par unless any basket stock falls below the protection price - 70% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of the shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | Omnivision Technologies, Inc., Continental Airlines, Inc., Rambus Inc., Frontier Oil Corp., NYSE Group, Inc. and Elan Corp., plc, equally weighted
|
| Amount: | $1.985 million
|
| Maturity: | Sept. 10, 2007
|
| Coupon: | 15%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any basket stock falls below the protection price during the life of the notes and finishes below the initial share price, in which case the payout will be a number of the shares equal to $1,000 divided by the initial share price
|
| Initial prices: | Omnivision at $11.50, Continental at $39.09, Rambus at $19.25, Frontier at $27.92, NYSE at $80.59, Elan at $12.47
|
| Protection prices: | Omnivision at $8.05, Continental at $27.363, Rambus at $13.475, Frontier at $19.544, NYSE at $56.413, Elan at $8.729, (all 70% of the initial price)
|
| Pricing date: | March 5
|
| Settlement date: | March 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
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