New Issue: HSBC USA prices $163,000 17% reverse convertibles linked to Take-Two Interactive

By Angela McDaniels

Seattle, July 25 - HSBC USA Inc. priced a $163,000 issue of reverse convertible notes due Oct. 29, 2007 linked to the common stock of Take-Two Interactive Software, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 4.25% for an annualized rate of 17%. Interest is payable monthly.

The payout at maturity will be par unless Take-Two Interactive stock falls below the barrier price of $15.832 during the life of the notes and finishes below the initial share price of $19.79, in which case the payout will be a number of Take-Two Interactive 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:	Take-Two Interactive Software, Inc.
Amount:	$163,000
Maturity:	Oct. 29, 2007
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	If Take-Two Interactive stock falls below the barrier price during the life of the notes and finishes below the initial share price, 50.531 Take-Two Interactive shares; otherwise, par
Initial share price:	$19.79
Barrier price:	$15.832, 80% of initial share price
Pricing date:	July 24
Settlement date:	July 27
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%

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