New Issue: HSBC prices $775,000 16.2% reverse convertibles linked to Advanced Micro Devices

By Angela McDaniels

Seattle, Jan. 30 - HSBC USA Inc. priced $775,000 reverse convertible notes due July 31, 2007 linked to the common stock of Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 8.1% for an annualized rate of 16.2%. Interest will be payable monthly.

The payout at maturity will be par unless Advanced Micro Devices stock falls below the barrier price of $12.17 during the life of the notes and finishes below the initial share price of $16.22, in which case the payout will be a number of Advanced Micro Devices shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Advanced Micro Devices, Inc.
Amount:	$775,000
Maturity:	July 31, 2007
Coupon:	16.2%, payable monthly
Price:	Par
Payout at maturity:	Par if Advanced Micro Devices stock remains at or above the barrier price during the life of the notes or finishes at or above the initial share price; otherwise, 61.65228 Advanced Micro Devices shares
Initial share price:	$16.22
Barrier price:	$12.17, 75% of initial share price
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.5%

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