Published on 10/19/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA sells $1.29 million 15.3% reverse convertibles linked to four stocks
By Jennifer Chiou
New York, Oct. 19 - HSBC USA Inc. priced $1.29 million of 15.3% annualized reverse convertible notes due Jan. 23, 2008 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are Joy Global Inc., Indymac Bancorp, Inc., Western Refining, Inc. and Energy Conversion Devices, Inc.
Interest is payable monthly.
For each stock, the payout at maturity will be $250.00 unless that stock falls below its barrier price - 65% 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 stock will be a number of its shares equal to $250.00 divided by the initial share price or, at HSBC's option, the equivalent cash value.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | Joy Global Inc. (Symbol: JOYG), Indymac Bancorp, Inc. (Symbol: IMB), Western Refining, Inc. (Symbol: WNR) and Energy Conversion Devices, Inc. (Symbol: ENER)
|
| Amount: | $1.29 million
|
| Maturity: | Jan. 23, 2008
|
| Coupon: | 15.3%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If a 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 $250.00 divided by its initial share price; $250.00 for each 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: | $53.76 for Joy Global, $15.68 for Indymac, $36.64 for Western Refining and $26.53 for Energy Conversion Devices
|
| Barrier prices: | $34.944 for Joy Global, $10.192 for Indymac, $23.816 for Western Refining and $17.2445 for Energy Conversion Devices
|
| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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