New Issue: HSBC USA prices $0.496 million 15% reverse convertibles linked to AMR

By Jennifer Chiou

New York, Oct. 24 - HSBC USA Inc. priced a $0.496 million issue of 15% reverse convertible notes due Jan. 26, 2007 linked to AMR Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless AMR stock declines by 30% or more during the life of the notes and it finishes below the initial price, in which case investors will receive a number of AMR shares equal to $1,000 divided by the initial price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	AMR Corp.
Amount:	$0.496 million
Maturity:	Jan. 26, 2007
Coupon:	15%
Price:	Par
Payout at maturity:	Par unless AMR stock falls by 30% or more during the life of the notes and it finishes below the initial price, in which case a number of AMR shares equal to $1,000 divided by the initial price
Initial price:	$27.70
Barrier price:	$19.39, 70% of the initial price
Pricing date:	Oct. 20
Settlement date:	Oct. 26
Agent:	HSBC Securities (USA) Inc.

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