Published on 1/30/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $800,000 22.75% reverse convertibles linked to four stocks
By Jennifer Chiou
New York, Jan. 30 - HSBC USA Inc. priced $800,000 of 22.75% annualized reverse convertible notes due July 31, 2008 linked to the a basket of four common stocks, according to a 424B2 filing with the Securities and Exchange Commission
The basket includes equal weights of General Motors Corp., NutriSystem, Inc., Fannie Mae and Massey Energy Co.
Interest is payable monthly.
For each component stock, the payout at maturity will be $250 unless that stock falls below its barrier price - 60% 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 the initial share price or, at HSBC USA's option, the equivalent cash value.
The total payout at maturity will be equal to the sum of the payouts for the four components.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | General Motors Corp. (Symbol: GM), NutriSystem, Inc. (Symbol: NTRI), Fannie Mae (Symbol: FNM), Massey Energy Co. (Symbol: MEE)
|
| Amount: | $800,000
|
| Maturity: | July 31, 2008
|
| Coupon: | 22.75% annualized, paid monthly
|
| Price: | Par
|
| Payout at maturity: | $250 for each component stock unless that stock falls below its barrier price - 60% 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 the initial share price or, at HSBC USA's option, the equivalent cash value; total payout at maturity will be equal to the sum of the payouts for the four components
|
| Initial prices: | General Motors Corp. at $26.53, NutriSystem, Inc. at $24.72, Fannie Mae at $33.04, Massey Energy Co. at $36.64
|
| Barrier price: | General Motors Corp. at $15.918, NutriSystem, Inc. at $14.832, Fannie Mae at $19.824, Massey Energy Co. at $21.984, 60% of initial level
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
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