New Issue: HSBC USA prices $1.849 million 22.6% notes linked to Omnivision

By Angela McDaniels

Seattle, Feb. 27 - HSBC USA Inc. priced a $1.849 million offering of reverse convertible notes due Aug. 28, 2007 linked to the common stock of Omnivision Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 11.3% for an annualized rate of 22.6%. Interest is payable monthly.

The payout at maturity will be par unless Omnivision stock falls below the barrier price of $10.37 during the life of the notes and finishes below the initial share price of $13.83, in which case the payout will be a number of Omnivision shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Omnivision Technologies, Inc.
Amount:	$1.849 million
Maturity:	Aug. 28, 2007
Coupon:	22.6%, payable monthly
Price:	Par
Payout at maturity:	If Omnivision falls below the barrier price during the life of the notes and finishes below the initial share price, 72.30658 Omnivision shares; otherwise, par
Initial share price:	$13.83
Barrier price:	$10.37, 75% of $13.83
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.5%

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