Published on 9/12/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $10.2 million return optimization securities linked to banking stocks
By Angela McDaniels
Seattle, Sept. 12 - HSBC USA Inc. priced $10.2 million of 0% return optimization securities due Jan. 13, 2009 linked to a basket of 13 banking stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Bank of America Corp., the Bank of New York Mellon Corp. and BB&T Corp., each with a 7.70% weight; the common stocks of SunTrust Banks Inc., TCF Financial Corp., Zions Bancorporation, Marshall & Ilsley Corp., PNC Financial Services Group Inc., Regions Financial Corp. and Fifth Third Bancorp, each with a 7.69% weight; and the American Depositary Shares of Kookmin Bank, Banco Bradesco SA and Mitsubishi UFJ Financial Group Inc., each with a 7.69% weight.
The payout at maturity will be par of $10 plus double any basket gain, subject to a maximum return of 26.5%. Investors will receive par if the basket declines by 5% or less and will lose 1% for each 1% decline beyond 5%.
UBS Financial Services Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Return optimization securities
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| Underlying basket: | Bank of America Corp., the Bank of New York Mellon Corp. and BB&T Corp. (each with a 7.7% weight) and SunTrust Banks Inc., TCF Financial Corp., Zions Bancorporation, Marshall & Ilsley Corp., PNC Financial Services Group Inc., Regions Financial Corp., Fifth Third Bancorp, Kookmin Bank, Banco Bradesco SA and Mitsubishi UFJ Financial Group Inc. (each with a 7.69% weight)
|
| Amount: | $10.2 million
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| Maturity: | Jan. 13, 2009
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus double any basket gain, capped at 26.5% maximum return; par if basket falls by 5% or less; 1% loss for each 1% decline beyond 5%
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| Pricing date: | Sept. 10
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| Settlement date: | Sept. 13
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| Underwriter: | UBS Financial Services Inc.
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| Fees: | 1%
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