New Issue: HSBC prices $1 million 10% three-year reverse convertibles linked to Valero Energy

By Angela McDaniels

Tacoma, Wash., Aug. 24 - HSBC USA Inc. priced $1 million of 10% reverse convertible notes due Aug. 23, 2012 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable annually.

If the final share price of Valero stock is less than 75% of the initial share price, the payout at maturity will be a number of Valero shares equal to $1,000 divided by the initial price. Otherwise, the payout will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Valero Energy Corp. (Symbol: VLO)
Amount:	$1 million
Maturity:	Aug. 23, 2012
Coupon:	10%, payable annually
Price:	Par
Payout at maturity:	If final price of Valero stock is less than barrier level, 56.65722 Valero shares; otherwise, par
Initial share price:	$17.65
Barrier level:	$13.24, 75% of initial price
Pricing date:	Aug. 19
Settlement date:	Aug. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

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