New Issue: HSBC sells $512,000 of 12% reverse convertibles linked to Potash Corp. of Saskatchewan

By Laura Lutz

Des Moines, July 25 - HSBC USA Inc. priced $512,000 of 12% reverse convertible notes due July 29, 2008 linked to the common stock of Potash Corp. of Saskatchewan Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

At maturity, investors will receive par unless Potash stock falls below the protection price - 75% 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 Potash shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. will be the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Potash Corp. of Saskatchewan Inc.
Amount:	$512,000
Maturity:	July 29, 2008
Coupon:	12%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Potash stock falls below $59.4375 during the life of the notes and finishes below its initial price, in which case shares of Potash equal to $1,000 divided by the initial price
Initial share price:	$79.25
Barrier price:	$59.4375, 75% of $79.25
Pricing date:	July 24
Settlement date:	July 27
Agent:	HSBC Securities (USA) Inc.
Fees:	2.75%

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