New Issue: HSBC prices $3.099 million 16% reverse convertibles linked to Apple

By E. Janene Geiss

Philadelphia, Oct. 30 - HSBC USA Inc. priced $3,099,000 of reverse convertible notes due Jan. 31, 2008 linked to the stock of Apple, Inc. according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 4% for an annualized rate of 16%. Interest will be payable monthly.

At maturity, investors will receive par unless the stock falls below the barrier price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Apple shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Apple, Inc. (Symbol: AAPL)
Amount:	$3,099,000
Maturity:	Jan. 31, 2008
Coupon:	16%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below $147.76 during the life of the notes and finishes below its initial price, in which case a number of Apple shares equal to $1,000 divided by the initial price
Initial share price:	$184.70
Barrier price:	$147.76, or 80% of $184.70
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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