New Issue: HSBC sells $479,000 20.25% reverse convertibles linked to Indymac

By E. Janene Geiss

Philadelphia, Aug. 29 - HSBC USA Inc. priced $479,000 of reverse convertible notes due Dec. 3, 2007 linked to Indymac Bancorp, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 5.0625% for an annual interest rate of 20.25%. Interest is payable monthly.

The payout at maturity will be par in cash if Indymac stock stays at or above the protection price, 60% of the initial share price of $22.89, during the life of the notes or finishes at or above the initial share price. Otherwise, the payout will be in Indymac stock, with the number of 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:	Indymac Bancorp, Inc. (NYSE: IMB)
Amount:	$479,000
Maturity:	Dec. 3, 2007
Coupon:	20.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if Indymac stock stays at or above the protection price of $13.734 during the life of the notes or finishes at or above the initial share price; otherwise, 43 Indymac shares
Initial share price:	$22.89
Protection price:	$13.734, 60% of $22.89
Pricing date:	Aug. 28
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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