New Issue: HSBC USA sells $3.379 million 14% reverse convertibles linked to Qualcomm

By Angela McDaniels

Seattle, Nov. 22 - HSBC USA Inc. priced a $3.379 million issue of reverse convertible notes due May 24, 2007 linked to Qualcomm Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 7% for an annualized rate of 14%.

The payout at maturity will be par in cash unless Qualcomm stock falls below the barrier price of $30.09 during the life of the notes and finishes below its initial price, in which case payout will be a number of Qualcomm shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Qualcomm Inc.
Amount:	$3.379 million
Maturity:	May 24, 2007
Coupon:	14%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Qualcomm stock falls below $30.09 during the life of the notes and finishes below its initial price, in which case 26.58867 shares of Qualcomm stock
Initial share price:	$37.61
Barrier price:	$30.09, 80% of initial share price
Pricing date:	Nov. 21
Settlement date:	Nov. 27
Agent:	HSBC Securities (USA) Inc.
Agent fee:	2.25%

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