New Issue: HSBC sells $314,000 23.3% reverse convertibles linked to Overstock.com

By Laura Lutz

Des Moines, July 2 - HSBC USA Inc. priced $314,000 of 23.3% reverse convertible notes due Oct. 3, 2008 linked to the common stock of Overstock.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

At maturity, investors will receive par unless Overstock.com stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, 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 the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Overstock.com, Inc.
Amount:	$314,000
Maturity:	Oct. 3, 2008
Coupon:	23.3%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Overstock.com stock falls below $14.616 during the life of the notes and finishes below its initial price, in which case shares of Overstock.com equal to $1,000 divided by the initial price
Initial share price:	$18.27
Barrier price:	$14.616, 80% of $18.27
Pricing date:	June 29
Settlement date:	July 5
Agent:	HSBC Securities (USA) Inc.
Fees:	1.65%

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