New Issue: HSBC USA prices $718,000 20.25% reverse convertibles linked to Lehman Brothers

By Angela McDaniels

Seattle, Sept. 24 - HSBC USA Inc. priced $718,000 of 20.25% reverse convertible notes due Dec. 27, 2007 linked to the common stock of Lehman Brothers Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Lehman Brothers stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Lehman Brothers shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Lehman Brothers Holdings Inc. (Symbol: LEH)
Amount:	$718,000
Maturity:	Dec. 27, 2007
Coupon:	20.25%, payable monthly
Price:	Par
Payout at maturity:	If Lehman Brothers stock falls below the barrier price during the life of the notes and the final share price is less than the initial share price, 15.94896 Lehman Brothers shares; otherwise, par
Initial share price:	$62.70
Barrier price:	$50.16, 80% of initial share price
Pricing date:	Sept. 21
Settlement date:	Sept. 26
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%

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