New Issue: HSBC USA prices $225,000 8.5% notes linked to CSX

By Angela McDaniels

Seattle, Feb. 27 - HSBC USA Inc. priced a $225,000 offering of 8.5 reverse convertible notes due Feb. 28, 2008 linked to the common stock of CSX Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless CSX stock falls below the barrier price of $40.42

during the life of the notes and finishes below the initial share price of $32.34, in which case the payout will be a number of CSX shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	CSX Corp.
Amount:	$225,000
Maturity:	Feb. 28, 2008
Coupon:	8.5%, payable monthly
Price:	Par
Payout at maturity:	If CSX falls below the barrier price during the life of the notes and finishes below the initial share price, 24.74023 CSX shares; otherwise, par
Initial share price:	$40.42
Barrier price:	$32.34, 80% of $40.42
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	3%

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