New Issue: HSBC USA prices $2 million 10% reverse convertibles linked to Rent-A-Center

By Angela McDaniels

Tacoma, Wash., Nov. 13 - HSBC USA Inc. priced $2 million 10% reverse convertible notes due Nov. 13, 2008 linked to the common stock of Rent-A-Center, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Rent-A-Center shares fall by more than 40% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Rent-A-Center 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:	Rent-A-Center, Inc. (Symbol: RCII)
Amount:	$2 million
Maturity:	Nov. 13, 2008
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If Rent-A-Center shares close below the barrier price during the life of the notes and finish below the initial share price, 66.7557 Rent-A-Center shares; otherwise, par
Initial share price:	$14.89
Barrier price:	$8.99, 60% of initial share price
Pricing date:	Nov. 9
Settlement date:	Nov. 15
Agent:	HSBC Securities (USA) Inc.
Fees:	3.75%

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