Published on 6/28/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $710,000 5.625% down & in worst of reverse convertibles linked to ADS basket
By Laura Lutz
New York, June 28 - HSBC USA Inc. priced a $710,000 issue of 22.5% down & in worst of reverse convertible notes due Oct. 1, 2007 linked to a basket of American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the American Depositary Shares representing the stocks of Companhia Siderurgica Nacional SA, TAM SA, Gerdau SA and Companhia Vale do Rio Doce.
Interest will be payable at maturity.
The payout will be determined according to the performance of all reference assets during the life of the notes. At maturity, investors will receive par unless the market price of any ADS falls below the protection price - 80% 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 the worst-performing ADS 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: | $710,000
|
| Underlying shares: | American Depositary Shares of Companhia Siderurgica Nacional SA, TAM SA, Gerdau SA and Companhia Vale do Rio Doce
|
| Maturity: | Oct. 1, 2007
|
| Coupon: | 22.5%, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par unless any ADS falls below its protection price and finishes below its initial price; in that case, a number of the worst-performing ADS equal to $1,000 divided by its initial price
|
| Initial prices: | $50.90 for CSN, $32.82 for TAM, $24.54 for Gerdau, $43.65 for CVRD
|
| Protection prices: | 80% of initial prices; $40.72 for CSN, $26.25 for TAM, $16.632 for Gerdau, $34.912 for CVRD
|
| Pricing date: | June 26
|
| Settlement date: | June 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
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