New Issue: HSBC prices $1.794 million 17.7% reverse convertibles linked to General Motors

New York, June 10 - HSBC USA Inc. priced $1.794 million of 17.7% reverse convertible notes due Sept. 11, 2008 linked to General Motors Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless General Motors shares fall below the protection price of $9.732, 60% of the initial price of $16.22, during the life of the notes and finishes below the initial price in which case the payout will be General Motors 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:	General Motors Corp. (Symbol: GM)
Amount:	$1.794 million
Maturity:	Sept. 11, 2008
Coupon:	17.7%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless General Motors stock falls below the protection price of $9.732, 60% of the initial price, and finishes below the initial price, in which case General Motors shares equal to $1,000 principal amount divided by the initial price
Initial price:	$16.22
Protection price:	$9.732, 60% of $16.22
Pricing date:	June 6
Settlement date:	June 11
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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