New Issue: HSBC prices $438,000 15.75% reverse convertibles linked to Under Armour

By Angela McDaniels

Seattle, Jan. 30 - HSBC USA Inc. priced a $438,000 issue of reverse convertible notes due July 31, 2007 linked to the common stock of Under Armour, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 7.875% for an annualized rate of 15.75%. Interest will be payable monthly.

The payout at maturity will be par unless Under Armour stock falls below the barrier price of $37.53 during the life of the notes and finishes below the initial share price of $50.04, in which case the payout will be a number of Under Armour shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Under Armour, Inc.
Amount:	$438,000
Maturity:	July 31, 2007
Coupon:	15.75%, payable monthly
Price:	Par
Payout at maturity:	Par if Under Armour stock remains at or above the barrier price during the life of the notes or finishes at or above the initial share price; otherwise, 19.98401 Under Armour shares
Initial share price:	$50.04
Barrier price:	$37.53, 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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