New Issue: HSBC USA prices $1.656 million 30% reverse convertibles linked to Rambus

By Jennifer Chiou

New York, Sept. 26 - HSBC USA Inc. priced a $1.656 million issue of 30% reverse convertible notes due Dec. 29, 2006 linked to Rambus Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Rambus stock falls by 35% or more during the life of the notes and finishes below its initial price on the valuation day, Dec. 26, 2006, in which case payout will be a number of Rambus shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Rambus Inc.
Amount:	$1.656 million
Maturity:	Dec. 29, 2006
Coupon:	30%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Rambus falls below $11.67 during the life of the notes and finishes below its initial price; in which case, $1,000 divided by the initial share price of Rambus stock
Initial share price:	$17.95
Barrier price:	$11.67, 65% of initial share price
Pricing date:	Sept. 25
Settlement date:	Sept. 29
Agent:	HSBC Securities (USA) Inc.

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