New Issue: HSBC prices $478,000 16.5% reverse convertibles linked to Blackstone

By Susanna Moon

Chicago, Dec. 26 - HSBC USA Inc. priced $478,000 of 16.5% reverse convertible notes due June 25, 2008 linked to the stock of Blackstone Group LP, 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 - 75% 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 Blackstone 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:	Blackstone Group LP (NYSE: BX)
Amount:	$478,000
Maturity:	June 25, 2008
Coupon:	16.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below the barrier price during the life of the notes and finishes below its initial price, in which case 42.0521 Blackstone shares
Initial share price:	$23.78
Barrier price:	$17.835, or 75% of initial share price
Pricing date:	Dec. 21
Settlement date:	Dec. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

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