New Issue: HSBC prices $279,000 12.25% notes linked to Western Digital

By Angela McDaniels

Seattle, Jan. 26 - HSBC USA Inc. priced a $279,000 issue of 12.25% reverse convertible notes due Jan. 28, 2008 linked to the common stock of Western Digital Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The payout at maturity will be par in cash unless Western Digital stock falls below the barrier price of $16.66 during the life of the notes and finishes below the initial share price of $20.83, in which case the payout will be a number of Western Digital shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Western Digital Corp.
Amount:	$279,000
Maturity:	Jan. 28, 2008
Coupon:	12.25%, paid quarterly
Price:	Par
Payout at maturity:	Par in cash unless Western Digital stock falls below $16.66 during the life of the notes and finishes below its initial price, in which case payout will be 48.00768 Western Digital shares
Initial share price:	$20.83
Barrier price:	$16.66, 80% of initial share price
Pricing date:	Jan. 24
Settlement date:	Jan. 29
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.25%

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