Published on 7/27/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC issues $974,000 32% down & in worst of reverse convertibles linked to stock basket
By Jennifer Chiou
New York, July 27 - HSBC USA Inc. priced $974,000 of 32% annualized down & in worst of reverse convertible notes due Jan. 30, 2008 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The basket includes the stocks of Smith & Wesson Holding Corp., Force Protection, Inc., Ceradyne, Inc. and Teledyne Technologies Inc.
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 any stock falls below its protection price - 70% of its initial share price - during the life of the notes and the worst-performing stock finishes below its initial share price, in which case the payout will be a number 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
|
| Underlying stocks: | Smith & Wesson Holding Corp. (Symbol: SWHC), Force Protection, Inc. (Symbol: FRPT), Ceradyne, Inc. (Symbol: CRDN) and Teledyne Technologies Inc. (Symbol: TDY)
|
| Amount: | $974,000
|
| Maturity: | Jan. 30, 2008
|
| Coupon: | 32% annualized, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless the final price of the worst-performing stock falls below the protection price - 70% 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 shares equal to $1,000 divided by the initial price
|
| Initial share prices: | Smith & Wesson Holding Corp. at $17.76, Force Protection, Inc. at $17.06, Ceradyne, Inc. at $76.05 and Teledyne Technologies Inc. at $45.45
|
| Protection prices: | Smith & Wesson Holding Corp. at $12.432, Force Protection, Inc. at $11.942, Ceradyne, Inc. at $53.235 and Teledyne Technologies Inc. at $31.815, 70% of the initial prices
|
| Pricing date: | July 25
|
| Settlement date: | July 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
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