New Issue: HSBC USA prices $375,000 18.75% notes linked to Overstock.com

By Angela McDaniels

Seattle, March 27 - HSBC USA Inc. priced a $375,000 offering of reverse convertible notes due June 28, 2007 linked to the common stock of Overstock.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 4.6875% for an annualized rate of 18.75%. Interest is payable monthly.

The payout at maturity will be par unless Overstock.com stock falls below the barrier price of $14.31 during the life of the notes and finishes below the initial share price of $17.89, in which case the payout will be a number of Overstock.com shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Overstock.com, Inc.
Amount:	$375,000
Maturity:	June 28, 2007
Coupon:	18.75%, payable monthly
Price:	Par
Payout at maturity:	If Overstock.com stock falls below the barrier price during the life of the notes and finishes below the initial share price, 55.89715 Overstock.com shares; otherwise, par
Initial share price:	$17.89
Barrier price:	$14.31, 80% of initial share price
Pricing date:	March 23
Settlement date:	March 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.25%

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