New Issue: HSBC USA prices $225,000 9% notes linked to LG.Philips

By Angela McDaniels

Seattle, Feb. 27 - HSBC USA Inc. priced a $225,000 offering of reverse convertible notes due Aug. 28, 2007 linked to the common stock of LG.Philips LCD Co., Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 4.5% for an annualized rate of 9%. Interest is payable monthly.

The payout at maturity will be par unless LG.Philips stock falls below the barrier price of $13.77 during the life of the notes and finishes below the initial share price of $17.21, in which case the payout will be a number of LG.Philips shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	LG.Philips LCD Co., Ltd.
Amount:	$225,000
Maturity:	Aug. 28, 2007
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	If LG.Philips falls below the barrier price during the life of the notes and finishes below the initial share price, 58.10575 LG.Philips shares; otherwise, par
Initial share price:	$17.21
Barrier price:	$13.77, 80% of $17.21
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.5%

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