Published on 9/24/2007 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $91,000 20% down & in worst of reverse convertibles tied to three Chinese stocks
By Angela McDaniels
Seattle, Sept. 24 - HSBC USA Inc. priced a $91,000 issue of 20% down & in worst of reverse convertible notes due Sept. 26, 2008 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the American Depositary Shares of China Life Insurance Co. Ltd., China Mobile Ltd. and PetroChina Co. Ltd.
Interest is payable monthly.
The payout at maturity will be par unless any stock falls below its barrier price - 75% of its initial price - during the life of the notes and finishes below its initial price, in which case the payout will be a number of ADSs 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: | $91,000
|
| Underlying shares: | American Depositary Shares of China Life Insurance Co. Ltd. (NYSE: LCF), China Mobile Ltd. (NYSE: CHL) and PetroChina Co. Ltd. (NYSE: PTR)
|
| Maturity: | Sept. 26, 2008
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls below its barrier price during the life of the notes and finishes below its initial price; in that case, a number of ADSs of the worst-performing stock equal to $1,000 divided by its initial price
|
| Initial prices: | $75.94 for China Life, $72.50 for China Mobile, $167.22 for PetroChina
|
| Barrier prices: | $56.955 for China Life, $54.375 for China Mobile, $125.415 for PetroChina; 75% of initial price
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
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