HSBC delays planned 17.25% down & in worst of reverse convertibles linked to three stocks

By Laura Lutz

Des Moines, Sept. 4 - HSBC USA Inc. pushed back the pricing, settlement and maturity dates of a planned issue of 17.25% annualized down & in worst of reverse convertible notes linked to a basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The notes are now expected to mature on March 26, 2008, pushed back from March 17, 2008.

They are expected to price on Sept. 21 and settle on Sept. 26.

When the notes were first announced on Aug. 31, they were expected to price on Sept. 14 and settle on Sept. 19.

Interest will be payable monthly.

The basket includes the common stocks of Verizon Communications Inc. and China Mobile Ltd. and American Depositary Shares representing the common stock of America Movil, SAB de CV.

The payout will be determined according to the performance of all of the reference assets during the life of the notes. At maturity, investors will receive par unless any stock falls below its protection price - 75% of its initial share price - during the life of the notes and the worst-performing stock finishes below its initial share price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by its initial price.

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

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