New Issue: HSBC sells $500,000 24.125% reverse convertibles linked to Countrywide

By Susanna Moon

Chicago, Sept. 18 - HSBC USA Inc. priced a $500,000 issue of 24.125% reverse convertible notes due Sept. 19, 2008 linked to the common stock of Countrywide Financial Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

At maturity, investors will receive par unless the stock falls below the barrier price - 60% 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 Countrywide 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:	Countrywide Financial Corp. (NYSE: CFC)
Amount:	$500,000
Maturity:	Sept. 19, 2008
Coupon:	24.125%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below $11.562 during the life of the notes and finishes below its initial price, in which case shares of Countrywide equal to $1,000 divided by the initial price
Initial share price:	$19.27
Barrier price:	$11.562, or 60% of the initial share price
Pricing date:	Sept. 17
Settlement date:	Sept. 20
Agent:	HSBC Securities (USA) Inc.
Fees:	None

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