Published on 11/28/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $364,000 27% down & in worst of reverse convertibles tied to 10 stocks
By Jennifer Chiou
New York, Nov. 28 - HSBC USA Inc. priced a $364,000 issue of 27% down & in worst of reverse convertible notes due May 30, 2008 linked to a basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying securities are the common stocks of Altria Group, Inc., Citigroup Inc., AT&T Inc., Pfizer Inc., JPMorgan Chase & Co., Merck & Co., Inc., General Electric Co., Verizon Communications Inc., General Motors Corp. and E.I. DuPont De Nemours and Co.
Interest is payable monthly.
The payout will be based on the performance of the basket of reference assets during the life of the notes. At maturity, investors will receive par unless the market price of any stock falls below the protection price - 65% 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 shares of the worst-performing stock equal to $1,000 divided by its initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Down & in worst of reverse convertible notes
|
| Amount: | $364,000
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| Underlying shares: | Altria Group, Inc. (MO), Citigroup Inc. (C), AT&T Inc. (T), Pfizer Inc. (PFE), JPMorgan Chase & Co. (JPM), Merck & Co., Inc. (MRK), General Electric Co. (GE), Verizon Communications Inc. (VZ), General Motors Corp. (GM) and E.I. DuPont De Nemours and Co. (DD)
|
| Maturity: | May 30, 2008
|
| Coupon: | 27%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls below its protection price during the life of the notes and finishes below its initial price; in that case, a number of the worst-performing shares equal to $1,000 divided by its initial price
|
| Initial prices: | $73.35 for Altria, $30.26 for Citigroup, $36.73 for AT&T, $22.88 for Pfizer, $42.35 for JPMorgan, $58.94 for Merck, $37.45 for General Electric, $41.46 for Verizon, $27.15 for General Motors and $44.59 for E.I. DuPont
|
| Protection prices: | 65% of initial prices; $47.6775 for Altria, $19.669 for Citigroup, $23.8745 for AT&T, $14.872 for Pfizer, $27.5275 for JPMorgan, $38.311 for Merck, $24.3425 for General Electric, $26.949 for Verizon, $17.6475 for General Motors and $28.9835 for E.I. DuPont
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.65%
|
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