New Issue: HSBC USA prices $375,000 of 12% reverse convertibles linked to Best Buy

Laura Lutz

Des Moines, Sept. 28 - HSBC USA Inc. priced a $375,000 issue of 12% reverse convertible notes due Sept. 28, 2007 linked to Best Buy Co., Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Best Buy stock falls below the barrier price of $44.16 during the life of the notes and finishes below its initial price on the valuation day, Sept. 25, 2007, in which case payout will be a number of Best Buy shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Best Buy Co., Inc.
Amount:	$375,000
Maturity:	Sept. 28, 2007
Price:	Par
Coupon:	12%, paid quarterly
Payout at maturity:	If Best Buy falls below $44.16 during the life of the notes and finishes below its initial price, shares of Best Buy stock equal to $1,000 divided by the initial price; otherwise, par in cash
Initial share price:	$55.20
Barrier price:	$44.16, 80% of initial share price
Pricing date:	Sept. 26
Settlement date:	Sept. 29
Agent:	HSBC Securities (USA) Inc.

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