New Issue: HSBC prices $0.348 million 30% reverse convertibles linked to CIT Group

New York, March 28 - HSBC USA Inc. priced $0.348 million of 30% reverse convertible notes due July 1, 2008 linked to CIT Group Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless CIT Group stock falls below the protection price of $7.11, 60% of the initial price of $11.85, during the life of the notes and finishes below the initial price in which case the payout will be Cit 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:	CIT Group Inc. (Symbol: CIT)
Amount:	$0.348 million
Maturity:	July 1, 2008
Coupon:	30%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless CIT Group stock falls below the protection price of $7.11, 60% of the initial price, and finishes below the initial price, in which case CIT Group shares equal to $1,000 principal amount divided by the initial price
Initial price:	$11.85
Protection price:	$7.11, 60% of $11.85
Pricing date:	March 26
Settlement date:	March 31
Agent:	HSBC Securities (USA) Inc.
Fees:	2.00%

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