HSBC to price 10% reverse convertibles linked to EMC

By E. Janene Geiss

Philadelphia, Sept. 26 - HSBC USA Inc. plans to price reverse convertible notes linked to the common stock of EMC Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will mature three business days after the final valuation date, slated for April 8, 2008. The six-month notes will pay 5% for an annualized rate of 10%. Interest will be payable monthly.

At maturity, investors will receive par unless EMC falls below the barrier price - 80% 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 EMC shares equal to $1,000 divided by the initial share price.

The notes are expected to price on Oct. 5 and settle on Oct. 11.

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

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