New Issue: HSBC USA prices $375,000 12.55% notes linked to Atheros Communications

By Angela McDaniels

Seattle, March 27 - HSBC USA Inc. priced a $375,000 offering of reverse convertible notes due Sept. 27, 2007 linked to the common stock of Atheros Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6.275% for an annualized rate of 12.55%. Interest is payable monthly.

The payout at maturity will be par unless Atheros Communications stock falls below the barrier price of $18.83 during the life of the notes and finishes below the initial share price of $25.10, in which case the payout will be a number of Atheros Communications 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:	Atheros Communications, Inc.
Amount:	$375,000
Maturity:	Sept. 27, 2007
Coupon:	12.55%, payable monthly
Price:	Par
Payout at maturity:	If Atheros Communications stock falls below the barrier price during the life of the notes and finishes below the initial share price, 39.84064 Atheros Communications shares; otherwise, par
Initial share price:	$25.10
Barrier price:	$18.83, 75% of initial share price
Pricing date:	March 23
Settlement date:	March 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.5%

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