New Issue: HSBC USA prices $0.335 million 17% reverse convertibles linked to Oregon Steel Mill

By Jennifer Chiou

New York, Sept. 26 - HSBC USA Inc. priced a $0.335 million issue of 17% reverse convertible notes due March 29, 2007 linked to Oregon Steel Mill, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Oregon Steel Mill stock falls by 20% or more during the life of the notes and finishes below its initial price on the valuation day, March 26, 2007, in which case payout will be a number of Oregon Steel Mill shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Oregon Steel Mill, Inc.
Amount:	$0.335 million
Maturity:	March 29, 2007
Coupon:	17%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Oregon Steel Mill falls below $36.94 during the life of the notes and finishes below its initial price; in which case, $1,000 divided by the initial share price of Oregon Steel Mill stock
Initial share price:	$46.18
Barrier price:	$36.94, 80% of initial share price
Pricing date:	Sept. 25
Settlement date:	Sept. 29
Agent:	HSBC Securities (USA) Inc.

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