New Issue: HSBC prices $1.02 million 14.5% reverse convertibles linked to Blackstone Group

New York, Feb. 29 - HSBC USA Inc. priced $1.02 million of 14.5% reverse convertible notes due March 3, 2009 linked to Blackstone Group LP stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Blackstone Group stock falls below the protection price of $9.46, 55% of the initial price of $17.20, during the life of the notes and finishes below the initial price in which case the payout will be Blackstone Group shares equal to $1,000 principal amount divided by the initial price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Blackstone Group LP (Symbol: BX)
Amount:	$1.02 million
Maturity:	March 3, 2009
Coupon:	14.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Blackstone Group stock falls below the protection price of $9.46, 55% of the initial price, and finishes below the initial price, in which case Blackstone Group shares equal to $1,000 principal amount divided by the initial price
Initial price:	$17.20
Protection price:	$9.46, 55% of $17.20
Pricing date:	Feb. 27
Settlement date:	March 3
Agent:	HSBC Securities (USA) Inc.
Fees:	2.6%

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