New Issue: HSBC USA prices $2.217 million 21% reverse convertibles linked to eBay

By Jennifer Chiou

New York, Aug. 29 - HSBC USA Inc. priced a $2.217 million issue of 21% reverse convertible notes due Feb. 28, 2007 linked to eBay Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless eBay stock declines by 20% or more during the life of the notes and it finishes below the initial price, in which case investors will receive a number of eBay shares equal to $1,000 divided by the initial price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	eBay Inc.
Amount:	$2.217 million
Maturity:	Feb. 28, 2007
Price:	Par
Coupon:	21%
Payout at maturity:	Par unless eBay stock falls by 20% or more during the life of the notes and it finishes below the initial price, in which case a number of eBay shares equal to $1,000 divided by the initial price
Initial price:	$25.32
Pricing date:	Aug. 25
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.

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