By Laura Lutz
Des Moines, Feb. 25 - HSBC USA Inc. priced $985,000 of 15.4% reverse convertible notes due Aug. 28, 2008 linked to a stock basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of equal weights of the common stocks of Energy Conversion Devices, Inc.; InterOil Corp.; Intel Corp.; and Plexus Corp.
Interest will be payable monthly.
The payout at maturity will be the sum of the payouts for each of the component stocks.
For each component stock that stays at or above its protection level - 60% of its initial level - during the life of the notes or finishes at or above its initial level, the component payout will be 25% of par.
For each stock that falls below its protection level during the life of the notes and finishes below its initial level, the payout will be a number of shares of that stock equal to 25% of par divided by the stock's initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Reverse convertible notes
|
| Amount: | $985,000
|
| Underlying shares: | Equal weights of the common stocks of Energy Conversion Devices, Inc. (Symbol: ENER); InterOil Corp. (Symbol: IOC); Intel Corp. (Symbol: INTC); and Plexus Corp. (Symbol: PLXS)
|
| Maturity: | Aug. 28, 2008
|
| Coupon: | 15.4%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Sum of four component payouts; for each component stock that stays at or above protection level during life of notes or finishes at or above initial level, 25% of par; for each stock that falls below protection level during life of notes and finishes below its initial level, number of shares equal to 25% of par divided by that stock's initial level
|
| Initial level: | $27.12 for Energy Conversion; $21.70 for InterOil; $20.30 for Intel; $22.78 for Plexus
|
| Protection level: | $16.272 for Energy Conversion; $13.02 for InterOil; $12.18 for Intel; $13.668 for Plexus; 60% of initial levels
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.35%
|
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