New Issue: HSBC prices $1.11 million 17% reverse convertibles linked to Freeport-McMoRan

New York, April 11 - HSBC USA Inc. priced $1.11 million of 17% reverse convertible notes due Oct. 14, 2008 linked to Freeport-McMoRan Copper & Gold Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Freeport-McMoRan stock falls below the protection price of $70.0375, 65% of the initial price of $107.75, during the life of the notes and finishes below the initial price in which case the payout will be Freeport-McMoRan 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:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$1.11 million
Maturity:	Oct. 14, 2008
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Freeport-McMoRan stock falls below the protection price of $70.0375, 65% of the initial price, and finishes below the initial price, in which case Freeport-McMoRan shares equal to $1,000 principal amount divided by the initial price
Initial price:	$107.75
Protection price:	$70.0375, 65% of $107.75
Pricing date:	April 9
Settlement date:	April 14
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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