By Angela McDaniels
Seattle, Aug. 10 - HSBC USA Inc. priced $2.696 million of reverse convertible notes due Feb. 13, 2008 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of General Motors Corp., Grant Prideco, Inc., NutriSystem, Inc. and Titanium Metals Corp.
The six-month notes will pay 7.75% for an annualized rate of 15.5%. Interest is payable monthly.
For each component stock, the payout at maturity will be $250 unless that stock falls below its barrier price - 70% 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 component stock will be a number of its shares equal to $250 divided by its initial share price.
The total payout will equal the sum of the payouts for the four components.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
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| Underlying stocks: | General Motors Corp. (Symbol: GM), Grant Prideco, Inc. (Symbol: GRP), NutriSystem, Inc. (Symbol: NTRI) and Titanium Metals Corp. (Symbol: TIE), equally weighted
|
| Amount: | $2.696 million
|
| Maturity: | Feb. 13, 2008
|
| Coupon: | 15.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If a component 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 divided by its initial share price; $250 for each component 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: | $34.82 for GM; $53.55 for Grant Prideco; $53.88 for NutriSystem; $32.15 for Titanium Metals
|
| Barrier prices: | $24.374 for GM; $37.485 for Grant Prideco; $37.716 for NutriSystem; $22.505 for Titanium Metals
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
|
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